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.
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.
American stock markets anticipate further development of trade relations between the US and China. Yesterday's rise in the S&P 500 index, triggered by Trump's statements about a possible reduction of duties against China, slowed down on Thursday. Treasury Secretary denied the report.
Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
US stocks and dollar rate strengthened following Donald Trump's statements that he has no intention of firing Jerome Powell, chairman of the Federal Reserve (Fed).
Bloomberg reports that Wall Street experts are concerned about the short-lived nature of the recent S&P 500 surge. The index jumped by more than 2% after US Treasury Secretary Scott Bessent's statement regarding the likely easing of trade tensions with China.
This week, over 100 companies in the S&P 500 index will release their first-quarter financial reports. Wall Street strategists believe that the way tech stocks react the day after a major earnings release will be a key indicator for whether markets have bottomed.
Fearing threats to the economy, investors have begun to shift capital into safe-haven assets. According to Bloomberg Intelligence, inflows into ETFs focused on gold, short-term bonds, and low-volatility stocks have reached their highest levels since March 2023.
Global stock markets showed mixed performance on Tuesday as ongoing trade negotiations continued to weigh on investor sentiment. US equities recovered slightly after a sharp 2% decline, while the dollar fell to a 15-month low.
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.
