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.
Strategists at RBC Capital Markets LLC. issued a report on the negative impact of Middle East conflicts on oil prices and US stock valuations. Experts warn that the S&P 500 index could fall by 20% in the event of escalating geopolitical tensions and rising inflation in the United States.
According to Bloomberg, major technology companies have driven a rapid recovery in the US stock market following a recent downturn. The decline was triggered by a sweeping April 2 tariff order from US President Donald Trump.
Bloomberg columnist Merryn Somerset Webb expects outflows from the US stock market, despite the S&P 500 rising 20% from its April lows, easing trade tensions, slowing inflation, and no recession in the United States.
The S&P 500 has been holding near an all-time high for several weeks, despite encouraging US economic data. This situation is mainly due to investor concerns, Bloomberg says.
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of European and global stocks.
Analysts at Barclays and JPMorgan expect US stocks to go up despite the current cautiousness of institutional investors. So far, according to Deutsche Bank AG, their overall positioning on stocks is quite low.
On Tuesday, the S&P 500 index ended the trading session on a high note. According to Reuters, this trend reflects the US stock market's positive sentiment regarding the outcome of US-China negotiations.
Citigroup strategists note that major US tech giants are attracting growing investor interest, as market optimism about America's economic outlook outweighs global trade uncertainty. The S&P 500 is now about 2% below its February record highs.
Citigroup experts have revised their outlook on the scale and timing of rate cuts in the United States. If previously analysts assumed a reduction in borrowing costs by 100 basis points within four meetings in 2025, now they suggest a reduction of only 75 basis points.
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.
