Wall Street specialists explained why actions could rise despite uncertainty for global trade war.
The strategists of Citigroupled by Scott Chronet, they reviewed their goal for the S&P 500 for the expectation that tax cuts counteract the negative effects of tariffs on the US actions. The new goal by the end of the year of the executives of Wall Street It is now 6,600 points, compared to the previous 6,300.
Optimism relies on a season of corporate results better than it was foreseen: more than 81% of index companies exceeded estimates and there were few signs that tariffs are significantly affecting profits.
Wall Street analysts trust S&P 500
Citi uploaded its projections of Benefits per share for 2025 AU $ S272 (from US $ 261). By 2026, AU $308 raised them (from US $ 295) and anticipated that the S&P 500 could reach 6,900 points in the middle of next year, 8% more than the estimated level for this year.
However, the market faces Mixed signals. A survey of Bank of America He revealed that a 91% record of fund managers believe that US actions are overvaluedAfter the rebound since April. Although the global exposure to Variable Rent reached its highest point since February, 16% of investors maintains a weight lower than that of the US.
Wall Street Markets
Reuters
In any case, the Variable Income found support in the expectations of fiscal relief and rate cuts by the Federal Reserve, with a rally strongly concentrated in large technological ones. Nvidia, Microsoft, Meta, Broadcom and Palantir concentrate 68% of the profits of the S&P 500 so far this year.
Waiting for technological actions
While most megacorporations have already published results, The market awaits with special attention the Nvidia report of August 27.
In this context, Citi expects that the leadership of the group of the “Magnificent Seven”, driven by artificial intelligence, is maintained, but trusts that the progress extends to other sectors, following last year’s pattern. However, it recommends that investors closely monitor the macroeconomic and cyclical factors that could influence the direction of the variable income.
“The set of distortions related to the policies of the first semester is gradually incorporated into profit expectations,” Chronet and his team said. “The upward trajectory of the S&P 500 will require the maintenance leadership of large capitalization companies, with a continuous expansion between sectors to boost the pricing action,” they added.
Source: Ambito
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