MarketPulse experts do not rule out a potential S&P 500 rebound in the second half of 2025, if macroeconomic risks subside. The “Magnificent Seven” stocks could be the driving force behind the rise of the American markets. However, the recent pullback caused by Moody's downgrade of the US credit rating may also signal the likelihood of a bearish correction, MarketPulse warns.
Investors are currently concerned about the new president's fiscal policy. Donald Trump's proposed tax reforms may deepen the problem of budget deficit, which was a major reason for the recent revision of the country's credit rating.
Market attention is also focused on upcoming Fed commentary, as the central bank's future monetary policy course remains unclear, according to MarketPulse experts.
According to a Bloomberg survey, Wall Street strategists' estimates of the S&P 500's year-end level vary widely. On average, they expect the index to reach 5,900, but their projections range from 5,200 to 7,000 points.