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, Wall Street analysts credit the record-breaking rally in US stocks to Donald Trump’s measured policies. But experts warn investors may still be overlooking the risks, even from duties already in effect.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
On Thursday, the S&P 500 gained 0.5%, closing above 6,300 points for the first time ever. Bloomberg reports that US stock indexes hit new record highs due to stronger-than-expected retail sales data in June.
Morgan Stanley's chief strategist Michael Wilson anticipates a 5–10% decline in the S&P 500 this quarter as US trade policies affect corporate earnings. However, he views this as a buying opportunity ahead of sustained market growth.
Citadel Securities' Scott Rubner says that American investors may expect steady gains for US stocks ahead of Labor Day (September 1). After that, seasonal factors will likely push markets lower. Rubner stays bullish on US stocks for the next month, citing strong corporate earnings.
Reuters says that investors have become largely unfazed by headlines surrounding US administration actions, given their erratic nature. Wednesday’s rumors about a possible removal of Federal Reserve Chair Jerome Powell caused only a brief stir in the US stock market.
On Wednesday, the S&P 500 edged closer to record levels as US President Donald Trump dismissed speculation about ousting Federal Reserve Chairman Jerome Powell, thus easing investor concerns.
The S&P 500 index dipped 0.4% as disappointing bank earnings overshadowed upbeat US inflation data. Meanwhile, the Nasdaq 100 inched up 0.1% to reach a new record high. American stocks have been under pressure in recent weeks, weighing on broader market performance, Bloomberg reported.
American stock indexes closed slightly higher on Monday as investors maintained a cautious stance amid ongoing developments in Washington's trade policy, Reuters reported. Market participants are also awaiting key economic data releases in the upcoming earnings season.
Canadian RBC Capital Markets increased its forecast for the S&P 500 index for the end of 2025 from 5,730 to 6,250 points. As the reason for this, the bank's specialists pointed to an improvement in investor sentiment and growing attention to the prospects of the economy in 2026.
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.
