Strategist Mike Wilson says stick to says 4,700 is the next level of support

Published: April 7, 2025 at 4:42 a.m. ET

Barring the White House backing down on its tariff plans or signs of easing from the Federal Reserve, investors should brace for the S&P 500 to slide another 7% to 8%.

That’s according to a Morgan Stanley team of strategists led by Mike Wilson, who told clients in a note early Monday that the next level of support for the index SPX — the point at which buyers will step in — now sits at 4,700. They add that valuations offer better support at that level, which is close to the 200-week moving average, a longer-term indicator of technical trends.

About the Author