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.
The S&P 500 plummeted on Tuesday and closed below 5,000 for the first time in nearly a year. Investor hopes faded for a delay in Trump's imposition of import tariffs or concessions from the US before Wednesday's midnight deadline.
The US stock market has fallen sharply, pressured by fears of a long-running trade conflict. Strategists from Wall Street do not rule out a further decline in the indicator.
US President Donald Trump's tariff policies kept the market in a state of high volatility on Monday. The Dow Jones Index fell 0.91%, and the S&P 500 Index declined 0.23%, capping off a tumultuous session marked by fears of slowing US economic growth and rising inflation.
Evercore ISI’s chief equity strategist Julian Emanuel reduced his S&P 500 forecast to 5,600 points amid escalating trade conflicts. Emanuel also lowered his earnings per share (EPS) forecast for S&P 500 companies to 255 in 2025 and 272 in 2026.
US stocks collapsed, Bloomberg reported. The S&P 500 index fell another 3.7% in morning trading, extending a two-day decline of 10%, its worst since 1960. The US stock market experienced record losses totaling $6 trillion.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
UBS has downgraded US equities, cautioning that import tariffs may prolong market volatility by dampening both the US economy and global GDP growth. The bank downgraded its outlook for US equities from 'attractive' to 'neutral'.
The US stock market saw the biggest drop in stocks since the COVID-19 pandemic. Total losses amounted to $2.5 trillion, while the S&P 500 index fell by 4.8%. The main reason for this decline was the new tariffs imposed by US President Donald Trump.
The S&P 500 contracts tumbled over 3% after US President Donald Trump outlined a slate of import tariffs that could potentially push the US economy into recession, according to Bloomberg.
The S&P 500 index closed higher on Tuesday as investors worried ahead of the US administration's import tariffs taking effect. Traders weigh the economic consequences of President Trump's policy initiatives, particularly their potential to slow US growth while accelerating inflation.
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.
