icon
icon
icon
icon
$300 Off
$300 Off

News /

Newswires /

UBS Strategist's Bullish S&P 500 Forecast Raises Caution Amid Rising Market Optimism

AinvestFriday, Jun 28, 2024 3:57 am ET
1min read

UBS strategist Jonathan Golub has upped his S&P 500 target to 5600 by December, a 17% rise from current levels, marking a more bullish stance than the 5400 predicted in February. This optimistic view comes amidst a recent Investors Intelligence survey showing an increase in bullish sentiment from 56.5% to 59.4%.


As the S&P 500 continues its upward trajectory, with the index up 11.2% year-to-date and near record levels, UBS joins other major brokerages in raising its year-end target. UBS Global Research strategist Jonathan Golub has upgraded the bank's S&P 500 target to 5,600 points, marking a more optimistic stance than the initial forecast of 5,400 in February [1].

The revision in UBS's forecast reflects growing optimism regarding the U.S. economy and corporate earnings. The S&P 500's performance in 2024 is expected to be driven by stronger earnings forecasts and a supportive economic backdrop, with fading risks of recession [1]. In fact, UBS strategists have increased their earnings-per-share (EPS) forecast for 2024 to $245 from $240, implying an 11.4% growth through the year [1].

UBS's bullish stance on the S&P 500 is not an isolated occurrence. Other major brokerages, including Deutsche Bank and Wells Fargo, have also predicted the index would end at 5,500 or higher in 2024 [1]. Deutsche Bank's revised year-end target is based on the expectation that strong corporate earnings will support equity valuations, while BMO Capital Markets' prediction of a 5,600-finish in 2024 is underpinned by a belief that the U.S. economy will maintain its momentum in the coming months [1].

The optimistic outlook for the S&P 500 is also reflected in recent investor sentiment. According to a survey conducted by Investors Intelligence, bullish sentiment has increased from 56.5% to 59.4% [2]. This marks the highest level of bullish sentiment since December 2021 and suggests that investors are increasingly optimistic about the prospects for U.S. equities in the coming months.

References:

1. Reuters. UBS lifts S&P 500s year-end target to street high 5,600. May 28, 2023. https://www.reuters.com/business/finance/ubs-lifts-sp-500s-year-end-target-street-high-5600-2024-05-28/
2. Investors Intelligence. Bulls Versus Bears Survey. May 26, 2023. https://www.investorsintel.com/bulls-versus-bears-survey/

View Source

Comments

Add a public comment...
Post
No Comment Yet
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App