Wall Street Sees Stock Rout Ending, While European Rivals Are Not So Sure

The division underscores the difficulty of investment forecasting at a time when markets have few answers about the trajectory of economic growth and inflation.

Photographer: Jason Alden/Bloomberg
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There’s a geographical divide growing in views of the stock market, with European banks more skeptical than their generally sanguine US rivals.

Strategists at Switzerland’s UBS Group AG and the U.K.’s HSBC Holdings Plc on Tuesday warned of further declines for US equities as economic risks mount. UBS thinks the S&P 500 Index could see another slump of 8% or so, while HSBC double-downgradedBloomberg Terminal US stocks.