A trader observing screens on the New York Stock Exchange floor predicts that the S&P 500's next support level is at 4,700, according to Morgan Stanley. This level, close to the index's 200-week moving average, could offer more appealing valuations. However, there are concerns on Wall Street about a further decline, with some forecasts going as low as 4,450.

The recent market turmoil, triggered by tariffs, may continue before investors see a significant recovery. Morgan Stanley highlights the importance of the 4,700 mark, expecting it to provide a cushion for the market. The recent downturn in valuations, influenced by negative earnings revisions exacerbated by tariffs, has affected various stocks.

Although the 200-week average may offer support in the current situation, there is uncertainty about how it would hold up during a potential recession. Market experts suggest that the outcome depends on factors such as the impact of tariffs on the economy and the Federal Reserve's response to inflation amidst slowing growth.

Analysts predict more challenges for the stock market, especially if the U.S. heads towards a recession due to tariffs. Despite historical trends showing equities recovering after significant volatility spikes, concerns remain high about the market's stability. Expectations of the S&P 500 dropping to 4,450 by the end of the year persist, reflecting uncertainties around tariffs and the risk of a recession.