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 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.
According to Reuters, US stocks closed slightly higher yesterday. The S&P 500 index rose 0.16%, though it remains down about 2% year-to-date and is on track for its first quarterly loss since mid-2023.
According to David J. Kostin, chief US equity strategist at Goldman Sachs, international investors will keep buying US stocks despite the recent market plunge and the deteriorating growth outlook for the American economy.
As reported by the Economic Times, the S&P 500 is holding steady on Tuesday after a sharp surge a day earlier. The index rose as Nvidia and Tesla shares rallied following signs that US President Donald Trump's administration will take a more measured approach to tariff policy.
The share of US stocks on Wall Street has hit a record low since 1999, while the share of European securities has risen, according to a Bank of America survey. Investor confidence in US stock markets has weakened due to President Donald Trump's trade policies.
As Bloomberg notes, investors expect greater volatility in S&P 500 options before the release of new economic data. This signals a higher demand for protection against market swings.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
US stocks edged lower as investors weighed mixed signals from the Federal Reserve, Yahoo Finance reported. Specifically, the S&P 500 dropped by 0.2%, the Dow Jones fell by 0.1%, and the Nasdaq Composite decreased by 0.3%.
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.
