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.
According to Bloomberg, traders are no longer hedging against a potential drop in the S&P 500 index, betting instead on a rapid recovery after last month's slump. The agency notes that “greed has gripped the markets”, replacing previous fears.
The implementation of tariffs from US administration on April 2 worsen the situation on financial markets and diminished the market price of American stocks by $6 trillion. It happened due to massive dumping of stocks by hedge funds, Wall Street “smart money”, and other professional investors.
This week, Fidelity International's fund manager said she increased the share of US stocks in her portfolio, citing market optimism following the US-China trade truce.
Citi and JPMorgan, two major Wall Street players, are willing to take risks by investing in shares of underperforming American companies. According to the strategists, this approach could allow the firms to secure quick, short-term gains.
US stocks are drifting on Thursday as investors are awaiting the country’s economic data release. According to the news agency, the Nasdaq index was down 0.02%, while the S&P 500 declined 0.13%.
Goldman Sachs President John Waldron said that the recent decline in investor interest in dollar assets should be interpreted as investors returning to a more neutral stance on the currency, rather than a mass flight from these assets.
A sustained rally in the US stock market threatens bearish position holders with major losses. At the same time, traders may face even more difficulties while trying to keep up with the stock market's rise from the current levels.
US stocks experienced a year-on-year increase due to the temporary resolution of trade disputes between the US and China, coupled with a decrease in inflation in the United States. These factors positively influenced investor sentiment, as reported by Bloomberg.
Australia's pension funds with a capital of 4.2 trillion Australian dollars (2.7 trillion US dollars) are reviewing some of their investment strategies amid uncertain trade policies of the United States.
Goldman Sachs raised its S&P 500 forecast as trade tensions between the US and China eased. The bank’s analysts suggest investors will pour more money in American stocks, betting on stronger growth in the domestic market.
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.
