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.
Goldman Sachs analysts warn that higher US trade tariffs will negatively impact corporate earnings for the second quarter. Since the beginning of the year, duties have increased by about 10% on average.
Investors will be closely watching a series of key US employment data releases this week, including reports on job openings and non-farm payrolls. Market participants are about to use them to assess the nation's economic resilience.
US stock indices have reached all-time highs despite worsening economic conditions and downward revisions to corporate earnings forecasts. Kate Moore, a Citi analyst, expressed concern about the current market situation.
US stocks have surged back from their April lows, with the S&P 500 closing at a record high on Friday. However, as Greg Daco of EY warned, the tariffs imposed by Donald Trump could accelerate inflation in the US, leading to income erosion in the second quarter of 2025.
Reuters reports that global shares hit record highs on Friday as investors grew more optimistic amid signs of progress in trade talks between the US and China.
An increase of the indicator value may contribute to the rise in quotes of S&P 500.
Investors are still pouring money into the US stock market, even as the S&P 500 approaches record highs and risks persist. Key threats include the looming end of Donald Trump’s tariff pause, signs of a slowing US economy, and ongoing geopolitical tensions, Bloomberg reports.
According to Nicholas Colas from DataTrek, the optimistic sentiment around tech companies in the S&P 500 could lead to 1999-like valuations.
The S&P 500 closed inches from a record high on Thursday, climbing 0.8% to 6,101. According to Bloomberg, the rally was driven by easing tensions between Israel and Iran, which increased investor appetite for riskier assets, including tech stocks.
Big investors expect a repeat of last August's market rout. Then concerns over slower global growth sparked increased volatility in asset prices worldwide. Tensions in the Middle East, US tariffs, and fluctuating oil prices could lead to a similar situation this year.
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.
