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Wall Street's Big Three Still Bullish on US Stocks: Geopolitical Impact Does Not Change Bull Market
Summary: According to reports, strategists from major Wall Street banks have stated that despite the risks posed by the Iran conflict, their bullish outlook on the US stock market remains intact. Rising oil prices, concerns about living costs, and uncertainty about the Fed's interest rate outlook have led to the S&P 500 index (SPX) posting its ...
According to reports, strategists from major Wall Street banks have stated that despite the risks posed by the Iran conflict, their bullish outlook on the US stock market remains intact. Rising oil prices, concerns about living costs, and uncertainty about the Fed's interest rate outlook have led to the S&P 500 index (SPX) posting its worst two-week performance since the tariff turmoil in April last year. However, strategists from Goldman Sachs, Morgan Stanley, and JPMorgan Chase pointed out that earnings growth and valuations provide support, although valuations are still high, they are not as extreme as before. Wilson's year-end target for the S&P 500 index is set at 7800 points, implying about an 18% upside from last Friday's close. Goldman's Snyder expects the benchmark index to rebound to 7600 points.
As the war enters its third week, a sharp rise in oil prices has pushed up US bond yields and weakened bets on a Fed rate cut, as inflation concerns intensify. The Strait of Hormuz has become a focal point, and any prolonged disruption would exacerbate concerns about deepening global economic risks from the conflict. However, since the outbreak of the Iran conflict, the US stock market has only experienced a mild decline, with less than 20% of developed market stocks in technical oversold territory.
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Link: Wall Street's Big Three Still Bullish on US Stocks: Geopolitical Impact Does Not Change Bull Market [Copy]
