On Monday, HSBC raised the S&P 500 index's year-end target point from 5,000 points previously anticipated to 5,400 points, provided the US economy achieves a soft landing, which means the index will rise about 3% from the current level.
The Zhitong Finance App learned that HSBC raised the year-end target point of the S&P 500 index from the 5,000 points previously anticipated to 5,400 points on Monday, provided that the US economy achieves a soft landing, which means that the index will rise about 3% from the current level.
An HSBC strategist wrote in a report: “Raising the target stems from better profit expectations, thanks to strong GDP growth, recent profit performance, and the positive sentiment shown by companies in the last earnings quarter.”
After the adjustments, HSBC is in line with the expectations of its counterpart Bank of America Global Research and UBS. The index is expected to reach 5,400 points by the end of 2024. On Friday, the S&P 500 recorded its biggest weekly gain since 2024.
The brokerage firm predicts that the second half of 2024 will be “more turbulent” due to the US election, rising profit expectations, and a shift in the statement that the Federal Reserve will cut interest rates from “when” to “the extent of interest rate cuts.” Last week, the Federal Reserve kept interest rates unchanged and stuck to the forecast of cutting interest rates three times before the end of the year.
However, under a bear market scenario, HSBC predicts that if economic data continues to be hot, this may lead to a rise in inflation, and the target point will reach 4,800 points by the end of the year.