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.
Trump's import tariffs announced in early April are still keeping investors on edge. Several experts, according to Yahoo Finance, predict a further decline in the US stock market. Callie Cox of Ritholtz says that S&P 500 tends to drop well below current levels in the run-up to a recession.
The US stock market has recovered from this month’s sell-off, revealing traders’ desire to invest in safer sectors.
Analysts at Morgan Stanley are busy cutting profit forecasts for the top 500 companies in the US because of the risk of a serious economic downturn.
On Monday, US stock index fell by 0.72% after the markets resumed work following the long holiday weekend. Persistent concerns regarding the lack of direct trade talks between the US and China are still weighing on investor sentiment.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
Senator Elizabeth Warren has warned of a serious threat to the US stock market if Jerome Powell leaves his post as head of the Federal Reserve (Fed). Warren believes that the Fed's politicization may reduce investor confidence, with risks of large-scale capital outflows.
A survey conducted by Bloomberg shows that concerns over US import tariffs’ impact on economic growth and corporate profits have prompted Wall Street’s strategists to cut their average year-end target for the S&P 500 from 6,539 to 6,047, or by 7.5%.
Reuters reports that US stocks fell sharply on Wednesday due to concerns about slowing economic growth and rising import tariffs. Major indices suffered significant losses, with the S&P 500 declining 2.24%, the Dow Jones dropping 1.73%, and the Nasdaq falling 3.07%.
US stocks fell on Tuesday evening, led by declines in shares of technology companies. The S&P 500 index dropped 0.8% to 5,384 points. Nvidia warned of a significant drop in profits due to new US restrictions on exporting its chips to China.
The latest survey conducted by the Bank of America (BofA) showed that investor sentiment has reached a record low over the past 30 years. 82% of market participants interviewed for the survey are planning to reduce investments in US equities.
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.
