Current S&P 500 year-end target cut bigger than in pandemic — Bloomberg

A survey conducted by Bloomberg shows that concerns over US import tariffs’ impact on economic growth and corporate profits have prompted Wall Street’s strategists to cut their average year-end target for the S&P 500 from 6,539 to 6,047, or by 7.5%. By comparison, they lowered their year-end forecasts for the index by 5% during the period of record stock market volatility tied to the COVID-19 pandemic, the news agency says.

At the moment, strategists expect the S&P 500 to gain an average of 2.8% for the year. The outlook is optimistic for the index that was on the verge of a bear market in early April, Bloomberg adds. 

Out of the 21 strategists polled by the news agency, 13 downgraded their forecasts for the S&P 500. JPMorgan’s Dubravko Lakos-Bujas slashed his outlook the most—by 20% to 5,200. Teams at Oppenheimer & Co., Evercore ISI, Ned Davis Research, and Bank of America lowered their estimates by more than 15%.

Chris Harvey of Wells Fargo still sees the S&P 500 finishing the year at 7,007, the highest target on Wall Street. Binky Chadha of Deutsche Bank expects the index to reach 7,000 by the end of 2025.