Investors Braced for 7-8% S&P 500 Drop as Morgan Stanley Sounds Alarm

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Friday, Oct 10, 2025 7:03 pm ET1min read
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Aime RobotAime Summary

- Morgan Stanley warns of a potential 7-8% S&P 500 drop due to economic and technical factors.

- Analysts highlight a simple equation suggesting a possible 20%+ decline, raising investor concerns.

- The S&P 500 fell in three of the first four months of 2025, signaling ongoing market volatility.

- Fundamental risks and technical indicators amplify fears of prolonged bearish trends.

Source: [1] S&P 500 Drop: Fundamental and Technical Factors - FBS (https://fbs.com/market-analytics/market-insights/s-p-500-drop-fundamental-and-technical-factors) [2] Investors should brace for another 7% to 8% drop in the S&P 500, says Morgan StanleyMS-- (https://www.morningstar.com/news/marketwatch/2025040726/investors-should-brace-for-another-7-to-8-drop-in-the-sp-500-says-morgan-stanley) [3] A Simple Equation Shows How The S&P 500 Could Fall ... (https://www.forbes.com/sites/chuckjones/2025/04/09/a-simple-equation-shows-the-sp-500-falling-another-20-or-more/) [4] The S&P 500 Declined in 3 of the First 4 Months of 2025. History ... (https://www.fool.com/investing/2025/05/09/the-sp-500-has-declined-in-3-of-the-first-4-months/)

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