J.P. Morgan expects the S&P 500 index to fall by 10% as the risk of war increases.

Morgan Stanley's trading department stated that American stock traders are not yet prepared for a potential pullback in the S&P 500 index, which could plummet by as much as 10% due to the impact of the conflict with Iran. With no signs of easing in the Middle East conflict pushing oil prices to over $100 per barrel, Morgan Stanley's global market intelligence chief Andrew Tyler switched his stance on US stocks to "tactically bearish" on Monday. A pullback means that this American benchmark index could drop by 10% from its peak, meaning the S&P 500 index could fall to around 6,270 points, approximately 7% lower than last Friday's closing level.