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.
American stock indexes rose and stabilized on the evening of May 12 following the announcement of a US-China trade deal. Traders' attention will now shift to upcoming key Consumer Price Index (CPI) data.
Bloomberg reports that financial jitters eased after the US and China agreed to reduce tit-for-tat tariffs for a while. The CBOE Volatility Index (VIX) fell nearly 3 points, hitting a 45-day low. The gauge is now trading below its historical average of 20 points.
The unprecedented surge in gold prices, which allowed the precious metal to repeatedly renew record highs, has also made this asset one of the most popular tools for long-term investment. Yet another evidence of this became the results of a recent Gallup poll.
US stocks demonstrated the best performance since March of this year. The reason for this was the easing of trade tension between Washington and Beijing and the temporary reduction of mutual tariffs on goods from both countries.
American stocks and the dollar rallied after China and the US reported major breakthroughs in two-day talks over the weekend aimed at easing trade tensions between the two countries.
The US stock market’s significant rebound over the past month was mostly driven by individual investors buying. Meanwhile, professional money managers ditched US assets on fears of the country’s slower economic growth.
On Monday, the S&P 500 gained 1.2% as progress in Beijing and Washington trade negotiations boosted market optimism about averting global recession. However, Reuters-polled analysts cautioned that concrete details remain scarce.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Over nine consecutive positive trading sessions by Friday, May 2, the S&P 500 Index had fully recovered from all its losses incurred after President Trump's tariff announcement on April 2.
American stock indexes climbed on Wednesday, with Reuters attributing the gains to an upcoming meeting in Switzerland later this week between US Treasury Secretary Scott Bessent, US Trade Representative Jamison Greer, and China's top economic official.
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.
