Analysts at UBS raised their targets for the S&P 500 index from 5,800 to 6,000 and set a June 2026 target of 6,400. Favorable first-quarter corporate earnings and hopes for stronger US GDP growth in the second half of the year contributed to the upgrade.
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.
According to BofA Global Research, investors sold US stocks and bought Japanese and European securities in the week ending Wednesday, April 30. During this period, the outflow from US markets totaled $8.9 billion.
The S&P 500 index's solid gains, fueled by China's and the United States' attempts to reach a mutually beneficial trade deal, weakened on Monday morning. Meanwhile, the markets' attention is drawn to this week's Fed meeting.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
According to a report by Reuters, the S&P 500 index has fallen nearly 8% since the inauguration of US President Donald Trump. The decline is largely attributed to his aggressive trade policies and unpredictable imposition of tariffs, which have dampened prospects for global economic growth.
On Tuesday, HSBC became the latest major international institution to adjust its outlook for the S&P 500 Index till the year-end.
Global stock markets are under pressure as concerns grow over the impact of tariffs on economic growth. On Wednesday, the S&P 500 fell 0.4%, while the Nasdaq dropped 0.6%. European and Asian markets also showed mixed performance, according to Reuters analysts.
Despite the recent market rebound, foreign investors remain reluctant to buy US assets, according to Deutsche Bank. Currency strategist George Saravelos notes a sharp halt in foreign fund inflows into US securities over the past two months.
The S&P 500 rose 0.1% on Tuesday. The increase was supported by US officials' comments about potential tariff reductions on auto imports. However, Reuters reported that investors had expected deeper cuts of the 145% duties on Chinese goods.
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.
