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.
Reduced tensions in the Middle East have put downward pressure on oil prices and the dollar exchange rate as investors' concerns about further escalation of the regional conflict eased. In contrast, the American stock market is on the rise, Reuters reports.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
Despite escalating geopolitical tensions, the US stock market has remained unusually calm, thus leaving traders uncertain about whether to close their positions or keep them in anticipation of a rising risk premium. Market fluctuations have been muted even as global events unfold.
Investors are bracing for a sharp decline in stock markets on Monday, as US measures against Iran could lead to retaliation. The situation in the Middle East has become a key influencing factor for markets, overshadowing the US economic data set to be released this week, Reuters reports.
A record $6.5 trillion worth of US stock options are set to expire on Friday, marking one of the largest events of this kind in recent years. Despite the relative calm observed since early May, analysts warn that such a move could trigger sharp market swings in the coming week, Bloomberg reports.
According to Bloomberg, growing tensions in the Middle East are fueling investor uncertainty. Technical indicators for US stocks remain mixed as market participants weigh the potential economic fallout of the conflict and its impact on their portfolios.
As reported by Reuters, American stocks could face a sharp sell-off if tensions between the US and Iran escalate. Such a scenario would further strain the already fragile global economy, pressured by Donald Trump's import tariffs.
US stock indices came under pressure this week. However, according to Yahoo Finance, they remain close to historic highs. Most investors keep being cautious.
According to Bank of America's (BofA) latest survey of fund managers, foreign stocks will outperform US equities over the next five years. This reaffirms the widespread belief among investors that the US market's dominance is coming to an end.
In recent years, the TINA principle (There Is No Alternative) has motivated investors to put their money in US stocks. Goldman Sachs experts say more and more US pension funds are buying stocks, and they believe 401(k) assets could hit $8.9 trillion by 2024.
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.
