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Market analyst Sam Stovall sees 'at least one more' big stock drop this year

  • The stock market could see at least one more big drop this year like the the S&P 500's more than 10 percent decline in early February, said strategist Sam Stovall of CFRA.
  • "Forty percent of all declines of 5 percent or more in one year were followed up by more than one later in that year," he said.

The stock market could see at least one more big fall this year, after the S&P 500's more than 10 percent retreat in early February, veteran strategist Sam Stovall told CNBC on Wednesday.

"We need to go down a bit more," Stovall, chief investment strategist at CRFA, said on "Squawk Alley." "If we do end up getting back to break even before going deeper than the 10.2 percent decline, I think we have at least one more of these kind of declines this year."

"Forty percent of all declines of 5 percent or more in one year were followed up by more than one later in that year," he added.

The S&P 500 fell into correction territory on Feb. 8 when it dropped about 10.2 percent from its peak on Jan. 26. The index lost about 292 points, falling from 2,872.87 to 2,581.

The S&P 500 was down about 9 percent midday Wednesday from its record high set in January.

Stocks have recently come under pressure again as trouble in the technology sector and concerns about a potential trade war between the U.S. and China has rattled Wall Street.

Last week, Trump signed an executive memorandum that will impose tariffs on up to $60 billion in Chinese imports. The following day, China announced plans for reciprocal tariffs on 128 U.S. products, including pork, wine, fruit and steel.

Several of the market's favorite technology stocks tanked as investors grew concerned over the companies' ambitious growth following new developments Tuesday.

"I'm feeling like investors are pulling petals off of a daisy saying 'it's over, it's not over, it's over, it's not over,'" Stovall said, referring to the recent market turmoil. "I don't think it's over just yet."