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BNP Paribas Warns of 19% S&P 500 Drop Ahead

5/3/2025

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Summary

Story summary

BNP Paribas forecasts a potential 19% drop in the S&P 500 due to trade war risks and earnings downgrades.
The bank anticipates a valuation trough at 18 times earnings, hinting at a market retest of year-to-date lows.
April's jobs report revealed 177,000 new jobs, surpassing expectations, yet economists express caution over tariff impacts.
Analysts warn of further stock declines if economic indicators deteriorate, stressing the importance of downside protection.

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Story summary

BNP Paribas forecasts a potential 19% drop in the S&P 500 due to trade war risks and earnings downgrades.
The bank anticipates a valuation trough at 18 times earnings, hinting at a market retest of year-to-date lows.
April's jobs report revealed 177,000 new jobs, surpassing expectations, yet economists express caution over tariff impacts.
Analysts warn of further stock declines if economic indicators deteriorate, stressing the importance of downside protection.