Original title: the S & P 500 can rise by nearly 10%, and this year's close is expected to hit a record high for 74 times. Bright analysts are optimistic about the outlook for US stocks.
Source: FX168
On Wednesday, the S & P 500 rose sharply over the past year, hitting record highs, and Wall Street analysts expect it to continue to rise.
Industry analysts on average expect the s & p to rise 9.9 per cent to 4803.6 over the next 12 months from Monday's close of 4369.21, according to data compiled by FactSet.
The 9.9 per cent increase will be well below the 37 per cent rise in the S & P 500 over the past 12 months, but it still represents solid gains at a time when some investors question whether the US stock market can continue to rebound strongly.
Analysts expect share prices in the energy and materials sectors to rise the most, up 17 per cent and 16 per cent respectively from the close on Thursday, when the data were collected, according to FactSet, a company that compiles industry forecasts.
Energy and materials are so-called cyclical industries that are expected to benefit from reopening and stronger economic growth andInflation, these industries performed poorly during the coronavirus pandemic in 2020, but rebounded in 2021.
BlackRock"as economic activity expands and corporate earnings expectations are boosted, we further believe that cyclical stocks have more potential upside," the Investment Institute said in its most recent mid-year outlook. " However, BlackRock said it would be increasingly picky about US stocks as stock market growth was expected to peak in the coming months after a rapid rebound in the first half of the year.
Analysts at LPL Financial said in their mid-year outlook: "the economic improvement should continue to support the earnings of the S & P 500. Although valuations are still a bit high, we think they look reasonable after taking into account the still low interest rates and the potential for profit growth. "
A research report released by Bespoke Investment Group on Tuesday also said that the S & P 500 had 10 days of record earnings in the past 12 trading days, a situation rarely seen in nearly 50 years. The S & P 500 is up about 17% this year and has hit an all-time high 39 times, and Bespoke believes that at the current rate, the index is expected to close a record 74 times in 2021, the second highest ever and second only to 77 times in 1995.
The earnings season for US stocks kicked off on Tuesday, with JPMorgan ChaseAnd Goldman Sachs.The group's better-than-expected second-quarter results cheered the market as investors saw the financial sector as an indicator of the state of the economy.
Bank of AmericaAnalysts recently raised their growth forecasts for US GDP this year. The bank predicts that US GDP will grow by 7 per cent in 2021, up from 4.5 per cent in November last year, and 5.5 per cent in 2022, also higher than the previous estimate of 3 per cent. These optimistic forecasts and strong corporate earnings should continue to fuel the growth of the S & P 500.