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.
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.
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.
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.
