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.
Last week, the S&P 500 index tested the upper and lower boundaries of the 5,000–5,500 point range. On Friday, the index closed above 5,500 due to traders' optimism about a potential tariff agreement with China and their anticipation of monetary policy easing by the Federal Reserve (Fed).
Ken Fisher, billionaire investor and founder of Fisher Investments, has warned of potential bear market risks for the S&P 500 amid global economic challenges, which he says are being worsened by US trade policies.
This week, full of key economic events, is set to influence the US stock market. The S&P 500 index has managed to recover some of its recent losses, but still remains 10% below its February high. Positive quarterly reports from major US companies will support its rebound, according to Reuters.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
The US stock market was put at risk by the US administration's introduction of new trade duties. Bloomberg Intelligence data shows that analysts have already revised S&P 500 earnings forecasts for 2025 from 13% to 7.9%, confirming the negative impact of trade policy on business expectations.
Ryan McIntyre, an expert at Sprott Inc., advises investors to prioritize gold over the US stock market. Despite the precious metal’s price volatility in recent days, gold's surge past the level of $3,500 per ounce indicates the asset's strong upside potential.
On Thursday, US stocks finished the trading session with an increase. All three major US stock indices rose sharply, largely thanks to the technology companies of the “magnificent seven” group. Meanwhile, the situation with the US-China trade standoff is showing some signs of stabilization.
Deutsche Bank AG strategists led by Bankim Chadha lowered their year-end target for the S&P 500 index by 12% from 7,000 to 6,150.
The US dollar's decline is negatively impacting the profitability of European companies in the Stoxx 600 index, as 60% of their sales come from abroad.
Christopher Wood from Jefferies Financial Group Inc. believes that the US stock market is far from its peak and that investors should brace themselves for further declines in stocks, Treasuries, and the dollar.
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.
