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.
According to Morgan Stanley, the recent weakening of the US dollar may benefit American multinational corporations, which typically gain from favorable currency conversion effects when foreign earnings are translated back into dollars.
The temporary suspension of US import tariffs on key trading partners will expire this week. If trade tensions between the countries do not escalate after July 9, it could be positive for American stock markets, Reuters reports.
After a challenging and volatile first half of the year, long-term trend followers have resumed buying US equities, according to analysts at Bank of America Securities. The SG CTA index snapped a four-month losing streak in June, posting a 93 basis-point gain for the month.
Wall Street experts still see promising areas of investing, despite US stocks reaching record highs. Fund managers believe that buying assets during a rally can be a smart decision for long-term investing.
The S&P 500 and Nasdaq 100 indices closed at record highs of 6,282.3 and 22,900.1 points, respectively, on Thursday. Analysts attribute the upward trend to investor optimism following positive US employment data and Nvidia's approach toward a $4 trillion market capitalization.
The recent rally in the S&P 500, which lifted the index to new record highs, has encouraged investors and raised hopes for further stock market gains. However, as Rosenberg Research founder and president David Rosenberg warns, optimists could face disappointment.
The S&P 500 closed at a record high on Wednesday, fueled by strong gains in tech stocks and a positive boost from a new US-Vietnam deal. The agreement eased investor concerns over further escalation in the prolonged trade tensions, Reuters reports.
The latest Markets Pulse survey shows that even if the approaching July 9 deadline for US trade deals puts pressure on stocks, bargain-seeking investors won't let the stock market fall too sharply.
Reuters reports that the S&P 500 and the Nasdaq closed lower on Tuesday, while the Dow Jones ended the trading session higher. The S&P 500 fell 6.94 points, or 0.11%, to 6,198.01.
In April, analysts were slashing S&P 500 earnings-per-share forecasts at a record pace, with earnings revision breadth hitting -25%. But the figure is now at just -5%. According to Morgan Stanley experts, further improvement in this metric will lead to the index closing the year at 6,500.
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.
