How Wall Street investment banks perceive it
U.S. Bank:
S&P 500 Index target at 5000 points
Our optimism isn't based on expecting the Fed to cut rates, but on the achievements the Fed has already made. U.S. businesses have adapted to higher rates and inflation. We've navigated through the most significant macro uncertainties.
Royal Bank of Canada:
S&P 500 Index target at 5000 points
Highlighting the robust 9% surge in November that might impact some potential gains, yet foreseeing further upside potential ahead. Next year's U.S. stock returns are anticipated to be primarily driven by sustained inflation decline. The bank's valuation models indicate that decelerating inflation may significantly support price-to-earnings ratios.
Deutsche Bank:
S&P 500 Index target at 5100 points
The U.S. economy is heading towards a soft landing due to cooling inflation and stable GDP. Even if a recession occurs in 2024, Deutsche Bank suggests it won't significantly impact the U.S. stocks as most investors have factored this in. They anticipate a 10% rise in the S&P 500 Index by 2024, reaching 5100 points, with a potential 19% increase if the economy remains stable.
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