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.
The S&P 500 showed little movement on Wednesday as the truce between Israel and Iran held and Federal Reserve Chair Jerome Powell continued his testimony before Congress, Reuters reported.
Despite the many obstacles the US stock market has encountered this year on its way to growth, American stocks are now on track to hit new record highs. However, as Bloomberg notes, there are growing concerns among analysts that S&P 500 multiples are beginning to appear excessively high.
Despite nearing all-time highs, the S&P 500 Index could climb another 10% by the end of 2025, as BMO Capital Markets analysts reported. Chief Investment Strategist Brian Belsky has raised his year-end target for the index to 6,700, up from 6,100.
On Tuesday, US stocks demonstrated growth by more than 1%. As it was noted by AXS Investments’ CEO in New York Greg Bassuk, a relatively stabilized situation surrounding Iran has led to growing optimism among bulls on the US stock market.
US stocks are climbing as geopolitical risks wane, with the S&P 500 surging to 6,101, nearly erasing its April losses and edging closer to all-time highs. The rally follows a Middle East truce that has steadied oil markets, easing concerns over a potential crude price shock, Bloomberg reported.
According to Richard Chambers from Goldman Sachs, the dollar might continue its decline as currency hedging ratios rise, driven by foreign investors hedging against volatility.
Amid rising geopolitical tensions at the beginning of the week, strategists from major investment firms urged investors to stay calm and view the market downturn as a buying opportunity.
Jeremy Siegel, Chief economist of Wisdom Tree and professor of Finance at The Wharton School at the University of Pennsylvania, predicts that resolving the Middle East conflict could push the S&P 500 index higher.
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.
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.
