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.
Wall Street stock market strategists have largely abandoned their high expectations for S&P 500 rising in 2025. However, that's not the case with Christopher Harvey of Wells Fargo Securities LLC. He foresees the S&P 500 Index ending the year at 7,007 points.
Wall Street veteran Tom DeMark warns the S&P 500 currently sits in a vulnerable position. Shifts in global trade dynamics could drive the index down to 4,835, which would represent a 20% decline from February's peak and establish dominant bearish market sentiment.
The Economic Times reports that the S&P 500 index has ended its longest streak of gains in 20 years. The index fell 0.62% to 5,634 on Monday amid investor caution over new tariffs announced by US President Donald Trump and ahead of this week's Federal Reserve (Fed) decision.
Yahoo Finance reports that investors and analysts are highly skeptical about the effectiveness of the age-old stock market adage, "Sell in May and go away," given current market conditions.
Last week, major US technology companies, that dominate the S&P 500 Index, released their earnings reports. The results dispelled widespread investor concerns about potential market declines linked to the US administration's trade policies.
According to BofA Global Research, investors sold US stocks and bought Japanese and European securities in the week ending Wednesday, April 30. During this period, the outflow from US markets totaled $8.9 billion.
The S&P 500 index's solid gains, fueled by China's and the United States' attempts to reach a mutually beneficial trade deal, weakened on Monday morning. Meanwhile, the markets' attention is drawn to this week's Fed meeting.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
According to a report by Reuters, the S&P 500 index has fallen nearly 8% since the inauguration of US President Donald Trump. The decline is largely attributed to his aggressive trade policies and unpredictable imposition of tariffs, which have dampened prospects for global economic growth.
On Tuesday, HSBC became the latest major international institution to adjust its outlook for the S&P 500 Index till the year-end.
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.
