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 the Bank of America (BofA) survey, investors' allocation to US equities dropped by 40% in March compared to February. Such decline is attributed to a 10% drawdown in the S&P 500 over the past month.
US stocks, especially those of technology companies, continue to show weak performance on Wednesday. Investors are still concerned about the US economy ahead of the Federal Reserve's interest rate decision on Wednesday, Bloomberg reports.
According to Reuters, unsustainable US policies could weaken the dollar, risking a decline in US asset prices. For the first quarter, S&P 500 stocks have recorded losses of about 6% in dollar terms.
The US stock market is rebounding for the second day in a row, continuing to recover after last week’s sharp drop of 10%. Shares of energy and industrial companies rose on the economic statistics, which, despite not meeting the expectations, managed to ease concerns regarding a US recession.
The S&P 500 Index recently entered a correction, having fallen 10% from its February highs as market worries intensified. However, most strategists do not consider the current year as a whole to be a bad one for US equities.
According to BofA Global Investment Strategy, private investor inflows into US equities reached about 2.5% in March. This marked the third-largest weekly increase in the history of the bank's observations.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Reuters reports that the US stock market has entered a period of correction. The S&P 500 index has fallen more than 10% from its February high. This represents a loss of about $5 trillion in market value.
As reported by Reuters, the US stock market showed a sharp decline on Thursday. The drop was triggered by concerns that the escalating tariff tensions between the US and its trading partners will accelerate inflation and slow down the economic growth.
Bloomberg Intelligence analyst Mike McGlone commented on the current slump of the leading cryptocurrencies, Bitcoin and Ethereum. In his opinion, the prospects for the growth of risk assets in the US this year are unfavorable.
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.
