According to the Bank of America specialists, the US stock market is showing signs of a probable decline in the near future. As the experts believe, it will create an opportunity to purchase the S&P 500.
According to the Bank of America specialists, the US stock market is showing signs of a probable decline in the near future. As the experts believe, it will create an opportunity to purchase the S&P 500.
The US stock market’s significant rebound over the past month was mostly driven by individual investors buying. Meanwhile, professional money managers ditched US assets on fears of the country’s slower economic growth.
On Monday, the S&P 500 gained 1.2% as progress in Beijing and Washington trade negotiations boosted market optimism about averting global recession. However, Reuters-polled analysts cautioned that concrete details remain scarce.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Over nine consecutive positive trading sessions by Friday, May 2, the S&P 500 Index had fully recovered from all its losses incurred after President Trump's tariff announcement on April 2.
American stock indexes climbed on Wednesday, with Reuters attributing the gains to an upcoming meeting in Switzerland later this week between US Treasury Secretary Scott Bessent, US Trade Representative Jamison Greer, and China's top economic official.
Wall Street stock market strategists have largely abandoned their high expectations for S&P 500 rising in 2025. However, that's not the case with Christopher Harvey of Wells Fargo Securities LLC. He foresees the S&P 500 Index ending the year at 7,007 points.
Wall Street veteran Tom DeMark warns the S&P 500 currently sits in a vulnerable position. Shifts in global trade dynamics could drive the index down to 4,835, which would represent a 20% decline from February's peak and establish dominant bearish market sentiment.
The Economic Times reports that the S&P 500 index has ended its longest streak of gains in 20 years. The index fell 0.62% to 5,634 on Monday amid investor caution over new tariffs announced by US President Donald Trump and ahead of this week's Federal Reserve (Fed) decision.
Yahoo Finance reports that investors and analysts are highly skeptical about the effectiveness of the age-old stock market adage, "Sell in May and go away," given current market conditions.
Last week, major US technology companies, that dominate the S&P 500 Index, released their earnings reports. The results dispelled widespread investor concerns about potential market declines linked to the US administration's trade policies.
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.