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.
The US stock market gained momentum yesterday, buoyed by upcoming trade talks between American and Chinese leaders, as well as Nvidia's positive first-quarter earnings report. However, just a few days earlier, Trump accused China of violating trade rules, Reuters reports.
According to Jefferies LLC, Wall Street analysts issued a record number of buy recommendations for S&P 500 companies in May after a strong market surge. The S&P 500 has rallied nearly 20% from its April lows, due to easing trade tensions under Donald Trump’s tariff policies.
Deutsche Bank has lifted its year-end 2025 forecast for the S&P 500, raising its target from 6,150 to 6,550. The bank’s analysts point to easing tariff pressure on corporate profits and the resilience of the US economy as key reasons for the revision.
US stocks finished higher on Monday, with investors largely showing no reaction to escalating US trade tensions with China and the European Union. The S&P 500 index rose about 0.4%, while the Nasdaq Composite index, tracking technology companies, climbed 0.7%.
Concerns about a US recession have eased recently. However, according to Morgan Stanley strategists, a downturn in the country's economy is still possible. A potential recession within the next 12 months would likely be mild and could support the stock market.
According to JPMorgan Chase & Co. strategists, rising consumer prices and a potential slowdown in US economic growth could hinder the S&P 500's ability to make further gains this summer.
On Monday, both the US dollar and the US stock market dropped amid escalating tariff disputes between America and China. Late last week, Donald Trump announced a possible increase in steel and aluminum import tariffs effective June 4, Reuters notes.
Tech giants, which dragged down the S&P 500 in April, are now fueling a recovery in US stocks. Traders expect companies such as Nvidia and Microsoft to drive the index higher in the near future, Bloomberg reports.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
As of Thursday, May 29, the S&P 500 index gained 6.2% over the month. This is one of the strongest results for May since 1990, according to Bloomberg. Such a confident rise would contrast with weak dynamics in June, the news agency's experts predict.
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.
