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.
On Thursday, the US stock market closed slightly lower, wavering between gains and losses as investors assessed the latest economic data and policy statements from the US Federal Reserve amid concerns over tariffs.
US stocks rallied sharply this week after the Federal Reserve decided to keep interest rates steady in March. The S&P 500 Index was among the top daily gainers.
According to the Bank of America (BofA) survey, investors' allocation to US equities dropped by 40% in March compared to February. Such decline is attributed to a 10% drawdown in the S&P 500 over the past month.
US stocks, especially those of technology companies, continue to show weak performance on Wednesday. Investors are still concerned about the US economy ahead of the Federal Reserve's interest rate decision on Wednesday, Bloomberg reports.
According to Reuters, unsustainable US policies could weaken the dollar, risking a decline in US asset prices. For the first quarter, S&P 500 stocks have recorded losses of about 6% in dollar terms.
The US stock market is rebounding for the second day in a row, continuing to recover after last week’s sharp drop of 10%. Shares of energy and industrial companies rose on the economic statistics, which, despite not meeting the expectations, managed to ease concerns regarding a US recession.
The S&P 500 Index recently entered a correction, having fallen 10% from its February highs as market worries intensified. However, most strategists do not consider the current year as a whole to be a bad one for US equities.
According to BofA Global Investment Strategy, private investor inflows into US equities reached about 2.5% in March. This marked the third-largest weekly increase in the history of the bank's observations.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Reuters reports that the US stock market has entered a period of correction. The S&P 500 index has fallen more than 10% from its February high. This represents a loss of about $5 trillion in market value.
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.
