Wells Fargo It has just joined the list of important Wall Street banks who trust the S&P 500 growth potentialsince its objective price increased by the end of the year due to more favorable macroeconomic factors than a while ago.
Bank’s specialists now estimate that the share index will close 2025 in a range of between 6,300 and 6,500 pointswhen they were waiting for a closure between 5,900 and 6,100 points. This way, The S&P 500 would end with a new historical maximum.
An economic improvement drives optimism on Wall Street
The update occurs after the decision of the US president, Donald Trumpto postpone the application of reciprocal tariffs and specify agreements with business partners such as the European Union and Japan.
Also, at the beginning of this month, Trump promulgated tax reduction laws and increased expenditure that will favor corporate profits.
“The dilution of tariff implementations and new tax provisions to companies should improve the growth of earnings and trust of investors,” said Wells Fargo in a note published for their customers.
Earlier this month, analysis firms Goldman Sachs, Bank of America, Oppenheimer and RBC Capital Markets also reviewed their projections for the S&P 500. And in all cases, new historical maximums are visualized.
Beyond the bag
In his report, Wells Fargo raised his growth estimate of the Gross Domestic Product (GDP) American a 1.3%from the previous 1.0%. In the second quarter, the US economy registered a solid annualized expansion of 3%, mainly driven by a strong drop in imports and a moderate increase in consumer spending.
Likewise, the Wall Street bank adjusted its prognosis of earnings per share for the index of US $ 260 AU $ 265 and raised its projection by 2026 of a previous range between 6,400 and 6,600 points to one of one of one of between 6,900 and 7,100 points.
Then, the entity maintained its preference for US and medium capitalization US actions against small capitalization and emerging markets. And he reaffirmed his expectation that the dollar will continue to show strength in a context of global growth.
Source: Ambito
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