The S&P 500 is up 10 of the past 11 months.
The S&P 500 is up 9 of the past 10 weeks.
The S&P 500 is up 5 months in a row.
The S&P 500 is up 6 weeks in a row.
— Ryan Detrick, CMT (@RyanDetrick) October 18, 2024
The stock market rally continues to charge forward, with top Wall Street analysts boosting their forecasts for the S&P 500. Many bank research desks have raised their price targets in response to the index’s upward trend, which has seen a 3% increase in the last month and a 23% rise this year, hitting 46 all-time highs in 2024. Strategists from major financial institutions such as Goldman Sachs, UBS, BMO, and Deutsche Bank have significantly increased their year-end price targets for the S&P 500.
GOLDMAN: Will the $9.5 trillion of money market assets make their way into the stock market?
“.. conclusion: don’t hold your breath, as the history book suggests that Fed easing cycles typically see capital flow into — not out of — the money markets.” $SPX pic.twitter.com/TVNDtZjkFR
— Carl Quintanilla (@carlquintanilla) October 20, 2024
UBS strategists Jonathan Golub and Patrick Palfrey have raised their target from 5,600 to 5,850, marking their fourth upgrade since late last year. Goldman Sachs’ chief equity strategist, David Kostin, has also increased his target to 6,000 by December, citing a steady macro outlook and greater margin expansion. BMO’s chief equity strategist, Brian Belski, recently raised his forecast from 5,600 to 6,100, driven by strong market gains and expectations for further growth in the fourth quarter.
S&P 500 ETF Total Returns…
1-Year: +38%
2-Year: +62%
3-Year: +37%
5-Year: +111%
7-Year: +156%
10-Year: +274%
15-Year: +609%
20-Year: +665%
30-Year: +2,040% (+10.8% annualized)$SPYhttps://t.co/mpJBYGzNyy pic.twitter.com/RPOPZe4w9V— Charlie Bilello (@charliebilello) October 19, 2024
Analysts’ upbeat S&P 500 targets
Deutsche Bank has adjusted its year-end target for the S&P 500 to 5,750 from 5,500, citing strong corporate earnings, rising stock buybacks, and higher risk sentiment. The upbeat forecasts are supported by positive data, including a strong September jobs report.
When the S&P 500 finishes October with a 10%+ trailing -month return (currently 15%), it's good news for Bulls! This has happened 12 times since 1950 and in each instance, the $SPX went on to finish November and December in the green with an average gain of 7.4%! pic.twitter.com/exi06wceMN
— Barchart (@Barchart) October 19, 2024
JPMorgan’s chief equity strategist, Dubravko Lakos-Bujas, suggested that investors should adopt a less defensive stance, given the current market conditions. However, several risks persist, including the upcoming US presidential election in November, uncertain monetary policy from the Federal Reserve, mixed economic data, and geopolitical tensions in the Middle East. UBS analysts remain cautiously optimistic, noting that “Fiscal and monetary policy uncertainty, and potential election outcomes, make 2025 returns far from certain.”
Despite these risks, the market’s recent performance and strong strategic forecasts continue to fuel investor confidence as the S&P 500 maintains its upward trajectory.
As the bull market charges on, investors will be closely watching for any potential shockers that could further boost stock market gains in the coming months.
