Citigroup equity strategists raise S&P 500 year-end target to 6,300 points from 5,800 points, citing bullishness on U.S. large-cap stocks and a more constructive fundamental perspective

Citigroup equity strategists raise S&P 500 year-end target to 6,300 points from 5,800 points, citing bullishness on U.S. large-cap stocks and a more constructive fundamental perspective

Citigroup equity strategists have significantly raised their year-end target for the S&P 500, projecting the index to reach 6,300 points by the end of 2025, up from their previous estimate of 5,800 points. This bullish outlook is driven by a more constructive fundamental perspective and optimism towards U.S. large-cap stocks.

The updated target reflects Citigroup's view that the U.S. economy is on a solid trajectory, with favorable conditions for corporate earnings and a supportive monetary policy environment. The strategists cite recent improvements in economic indicators, such as business and consumer sentiment, which have shown resilience despite ongoing trade tensions and tariffs. Furthermore, the recent passage of the House tax bill and its potential stimulative effects on the economy are seen as positive factors contributing to the upward revision.

Citigroup's equity team also points to the durability of artificial intelligence (AI) infrastructure stocks, which have rebounded after fears over Chinese AI upstarts and US export restrictions earlier this year. The company believes that the ongoing investment in AI by major tech companies and the potential for increased efficiency through AI adoption will continue to support equity markets.

The latest forecast from Citigroup aligns with the broader trend of rising S&P 500 targets among major brokerages and investment banks. For example, Deutsche Bank has raised its target to 6,550 points, while Goldman Sachs has increased its forecast to 6,100 points. This convergence of views suggests a growing consensus among financial professionals that the U.S. stock market has significant upside potential in the coming months.

In addition to the positive economic outlook, Citigroup strategists acknowledge the potential challenges posed by rising interest rates and fiscal angst. However, they believe that the overall positive fundamentals and the potential for continued economic growth will outweigh these risks.

Reference List:
[1] https://marketinsights.citi.com/Market-Commentary/Weekly-Market-Update/A-Tale-of-Two-Macro-Narratives.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S80LU:0-brokerages-lift-s-p-500-annual-targets-on-trade-relief/
[3] https://www.cnbc.com/pro/market-forecasts/
[4] https://www.barchart.com/story/news/32691405/citigroup-stock-is-c-underperforming-the-financial-services-sector