Investors are facing uncertain times ahead, regardless of the change in the calendar month to April. Keith Lerner, the co-chief investment officer at Truist, believes that the current stock market sell-off still has room to continue. While there may be some temporary relief due to tariff announcements, Lerner doesn't foresee significant upside potential in the market.

Lerner had downgraded his stance on stocks from Attractive to Neutral in late February, anticipating the recent selling pressure. He points out that US GDP forecasts are being revised downward for the first time in years, even as forward earnings estimates for the S&P 500 are on the rise. However, he sees risks to earnings due to lowered economic projections and potential profit margin challenges from tariffs.

Concerns over Trump's tariffs are causing anxiety among investors, as the possibility of trade partners retaliating against US exports adds to the impact of increased duties on imports. Major stock indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have experienced significant declines recently, with the S&P 500 down 5% year-to-date and heading towards its worst quarter since September 2022.

Companies like Tesla and Nvidia, once high performers in the market, are now underperforming. Trump's latest tariff comments have further intensified global market pressure. Trump's plan for tariffs on April 2 has caused analysts like Goldman Sachs' Jan Hatzius and David Kostin to adjust their economic and stock market forecasts downward, raising concerns about a potential recession.

Analysts anticipate that upcoming earnings reports could reveal negative news, as economic and earnings expectations are not aligning properly. Trivariate Research's Adam Parker warns that companies with decreased outlooks are not seeing their stock prices reflect these challenges, indicating that there could be more downside ahead in the market.