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.
US stocks have been falling in recent days due to US President Donald Trump's plans to impose 25% tariffs on automobile imports. Now investors are also trying to assess the scope of reciprocal duties, which are set to come into effect after April 2.
With the US President's trade tariffs looming, strategists at major investment banks are revising their forecasts for the American stock market. David Kostin from Goldman Sachs updated his year-end estimate for the S&P 500 index, lowering it to 5,700.
Global stock markets were in a tailspin on Monday after US President Donald Trump announced import tariffs targeting nearly all major countries. This move sparked greater anxiety over a global trade war and boosted recession risks affecting the world economy, Reuters reported.
European stocks are outperforming US markets as transatlantic trade tensions grow, boosting the region's appeal to investors. The DAX 40 has surged 13% year-to-date, outpacing the volatile S&P 500 amid tariff concerns.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
CNBC's Jim Cramer says the US stock market isn't looking as bad as Wall Street thinks. He highlights a wide range of companies that have demonstrated gains—from recession-resistant stocks to those thriving in a robust economy.
On Thursday, the S&P 500 index closed with a decline amid investor reaction to US President Donald Trump's latest announcement on trade tariffs. As a result, General Motors stocks fell more than 7% during a turbulent trading session yesterday, while Ford shares plunged 3.9%.
The S&P 500 index has recently regained its 200-day moving average following ten consecutive trading sessions of decline. However, Yahoo Finance reports that this recovery might be short-lived.
Barclays has slashed its year-end target for the S&P 500 to 5,900, now the lowest forecast among major financial institutions. The downgrade reflects concerns over President Trump’s tariff policies and weakening US economic data.
Strategists at UBS Group AG and HSBC Holdings Plc expressed concerns about the US stock market, warning of a possible decline in the S&P 500 by 8% to 5,300. European experts point in their forecasts to the deteriorating indicators of US economic activity.
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.
