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.
After Friday's concerns about Trump's plan to impose 50% tariffs on Europe as early as June 1, markets found a relief at the beginning of this week when the US President announced a pause in the introduction of these measures until July 9. As a result, the US dollar declined, Bloomberg says.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Analysts at UBS raised their targets for the S&P 500 index from 5,800 to 6,000 and set a June 2026 target of 6,400. Favorable first-quarter corporate earnings and hopes for stronger US GDP growth in the second half of the year contributed to the upgrade.
According to Bloomberg, easing trade tensions have reduced fears of recession in the United States economy and boosted consumer activity. As a result, the S&P 500 index has recovered all its losses incurred since early April.
The US stock index stabilized on Thursday, May 22nd, after falling during the previous trading session, when Treasury bond yields surged. At that moment, investors' fears that President Donald Trump's tax and spending bill would boost the national debt rose sharply.
According to the Bank of America specialists, the US stock market is showing signs of a probable decline in the near future. As the experts believe, it will create an opportunity to purchase the S&P 500.
Despite the rally over the past six weeks, US stocks continue to lag behind global equity markets this year. To sustain growth and regain leadership of the country’s stock market, corporate earnings in the US need to increase again, according to analysts at Bloomberg Intelligence.
MarketPulse experts do not rule out a potential S&P 500 rebound in the second half of 2025, if macroeconomic risks subside. However, the recent pullback caused by Moody's downgrade of the US credit rating may also signal the likelihood of a bearish correction.
Morgan Stanley upgraded its rating on US stocks to “overweight”, citing a combination of solid earnings with supportive monetary policy and a weakening dollar.
According to UBS strategists, volatility in the US stock market may increase due to uncertainty related to the trade and fiscal policies of the country's administration.
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.
