Stocks could tumble 15% or more even with a mild recession: JPMorgan

The stock market is underestimating the risk of an economic slump this year and even a mild recession would cause equities to tumble 15% or more from current levels, according to JPMorgan.

The S&P 500 index of US large-cap shares is up 8% so far this year despite the biggest bank failures since 2008 and the Federal Reserve pushing ahead with its most aggressive interest-rate increases in decades. "On the downside, even a mild recession would warrant retesting the previous lows and result in 15%+ downside," the strategists added.

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