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.
As reported by Bloomberg, despite investor shock and uncertainty caused by US trade tariffs, most strategists still expect the S&P 500 to rise during the rest of 2025. However, according to Peter Berezin, chief global strategist at BCA Research, such optimism goes against historical facts.
The S&P 500 Index’s 50-day moving average has crossed below its 200-day average, forming a "death cross", a technical indicator that historically precedes market downturns, though not always with certainty.
On Sunday, research analysts at Citi revised their 2025 year-end price target for the S&P 500 down to $5,600 from $6,500. The revision was prompted by a decrease in expected earnings per share (EPS) for the current year.
During Asian trading session this morning, contracts tied to US stock indices rose on the Donald Trump administration's decision to provide some relief for the electronics sector and exempt its goods from new import tariffs.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
Peter Berezin, chief strategist at BCA Research, warns that the S&P 500 index could extend its decline, pressured by record-high tariffs and a slowing US economy. BCA Research maintains its forecast at 4,450 points with the potential to drop to 4,200 points by the year-end.
The S&P 500 Index dropped more than 3% on Thursday as investor concerns grew over escalating trade tensions and potential tariff hikes. The decline erased gains from the previous day’s rally. Other major stock indexes and the US dollar also weakened on April 10, according to Reuters.
Citigroup Inc. is urging major clients to remain cautious when making investment decisions due to extreme volatility in the stock market. Due to sudden changes in the S&P 500 index, the experts advise traders to refrain from making rash deals and avoid unreasonable risks.
American stocks recorded their largest single-day gains in years following Trump’s declaration of a temporary pause in the imposition of sweeping tariffs. The S&P 500 posted its steepest rise in one day since 2008, the news agency notes.
Brian Belski, BMO Capital Markets chief investment strategist, has maintained his 6,700 year-end target for the S&P 500. This outlook represents a 37% rise from current levels.
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.
