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.
Analysts at Morgan Stanley are busy cutting profit forecasts for the top 500 companies in the US because of the risk of a serious economic downturn.
On Monday, US stock index fell by 0.72% after the markets resumed work following the long holiday weekend. Persistent concerns regarding the lack of direct trade talks between the US and China are still weighing on investor sentiment.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
Senator Elizabeth Warren has warned of a serious threat to the US stock market if Jerome Powell leaves his post as head of the Federal Reserve (Fed). Warren believes that the Fed's politicization may reduce investor confidence, with risks of large-scale capital outflows.
A survey conducted by Bloomberg shows that concerns over US import tariffs’ impact on economic growth and corporate profits have prompted Wall Street’s strategists to cut their average year-end target for the S&P 500 from 6,539 to 6,047, or by 7.5%.
Reuters reports that US stocks fell sharply on Wednesday due to concerns about slowing economic growth and rising import tariffs. Major indices suffered significant losses, with the S&P 500 declining 2.24%, the Dow Jones dropping 1.73%, and the Nasdaq falling 3.07%.
US stocks fell on Tuesday evening, led by declines in shares of technology companies. The S&P 500 index dropped 0.8% to 5,384 points. Nvidia warned of a significant drop in profits due to new US restrictions on exporting its chips to China.
The latest survey conducted by the Bank of America (BofA) showed that investor sentiment has reached a record low over the past 30 years. 82% of market participants interviewed for the survey are planning to reduce investments in US equities.
As reported by Bloomberg, despite investor shock and uncertainty caused by US trade tariffs, most strategists still expect the S&P 500 to rise during the rest of 2025. However, according to Peter Berezin, chief global strategist at BCA Research, such optimism goes against historical facts.
The S&P 500 Index’s 50-day moving average has crossed below its 200-day average, forming a "death cross", a technical indicator that historically precedes market downturns, though not always with certainty.
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.
