On Monday, Morgan Stanley strategists led by Michael Wilson reiterated their bullish stance on US equities, citing strong earnings growth. According to their scenario, the S&P 500 will reach 7,200 points by the middle of next year.
Bloomberg reports that Asian investors are pulling back from US equities. This follows a period of active buying in April when US stocks declined due to aggressive tariff policies implemented by President Donald Trump.
US stocks rose on Monday amid optimism over trade talks between the US and China. The S&P 500 gained 0.1%, inching closer to its all-time high, boosted by Amazon and Alphabet shares climbing more than 1%, Yahoo Finance reports.
According to a study by The Leuthold Group, the US stock market seems to be ruling out the risk of a recession in the country. Traders' actions indicate their confidence in the further growth of the American economy.
American stocks have staged a strong rebound from their spring lows following US President Donald Trump’s comments regarding new potential trade tariffs on foreign partners. The prevailing sentiment among Wall Street analysts is that the most challenging period for equities may be coming to an end.
The S&P 500 is just 2.3% away from its all-time high, yet the benchmark continues to struggle near the key psychological resistance threshold of 6,000. Market analysts surveyed by Reuters believe that a sustained rally in American stocks would require easing global trade tensions.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
The US markets stopped being a secure destination for foreign investors due to risks associated with President Donald Trump’s bill on tax and spending, believes chief economist at French asset manager Carmignac, Raphael Gallardo.
According to Reuters, the S&P 500 lost 0.53% on Thursday, closing at 5,930.80. Weaker-than-expected US employment and services sector reports heightened market concerns about slowing economic growth.
Barclays became another major lender that raised its projections for the S&P 500 index, following the example of Goldman Sachs, Deutsche Bank, and UBS Global Wealth Management.
The S&P 500 extended its gains on Tuesday. Artificial intelligence (AI) stocks garnered particular attention after Constellation Energy secured a power supply agreement with an Illinois nuclear plant.
The S&P 500 Index (Standard & Poor's 500) is one of the key indicators of the US stock market and overall economic health of the United States. It represents the stock performance of the country's leading corporations. This stock market instrument reflects the dynamics of different sectors and serves as a universal benchmark for investors and analysts.
Major factors that determine the value of S&P 500:
The S&P 500 is often seen as a gauge of US financial health. Its growth suggests positive expectations and investor confidence, while a decrease may signal risks of recession or crisis.
This index is used for both long-term investing and short-term trading. To forecast its movement accurately, it's necessary to take into account macroeconomic data, corporate reporting, and the overall state of the stock market.
