Wall Street Optimism: S&P 500 Targets Revised Upward

Wall Street brokerages Citigroup and UBS have raised their year-end targets for the S&P 500 index due to receding policy risks and strong corporate earnings. Citigroup revised its target to 6,600 and UBS to 6,100. Oppenheimer predicts the index could reach 7,100, the highest forecast on Wall Street.

In a noteworthy development for financial markets, Citigroup and UBS Global Research have adjusted their year-end forecasts for the S&P 500 index upward, citing diminishing policy risks and robust corporate earnings.

Citigroup revised its target to 6,600 from 6,300, while UBS adjusted its expectations to 6,100 from 5,500. These latest predictions indicate a potential upside and downside of 3.2% and 4.7% respectively based on the index's most recent closing figure. The revisions are part of a broader trend, following similar upgrades from other major brokerages, including HSBC, Goldman Sachs, and BofA Global Research.

According to Oppenheimer Asset Management, the index has the potential to climb as high as 7,100, which would represent the most optimistic assessment on Wall Street. In contrast, only Jefferies has set a target below 6,000, at 5,600. While UBS anticipates a short-term market dip with potential corrections to 5,900, it projects a recovery to 6,100 by late 2025 and 6,800 by 2026.

(With inputs from agencies.)