S&P 500 could rally for next 8 weeks: Wall Street analysts

Rising asx share price represented by woman with excited expression holding laptop

Rising asx share price represented by woman with excited expression holding laptopThe S&P 500 Index (INDEXSP: .INX) could be on track to deliver an impressive rally over the next two months, according to experts.

After rising by around 10% since the start of the year to 2 February 2023, it then dropped over 5% to 1 March 2023.

But, experts believe that the US share market is poised to perform well in the coming months. This could be good news for the global share market and the ASX share market because of how influential investor sentiment in the US can be on the world of the world’s share markets.

Why the positivity?

The Australian Financial Review quoted Stifel’s chief equity strategist Barry Bannister’s thoughts on the situation:

The bearish chorus of Wall Street strategists continues to fight the S&P 500 rally since the intraday low (3491.58) on October 13 with those strategists flip-flopping from calling an imminent recession (caused by the Federal Reserve) to no recession (so, the Fed must cause one).

They can call it a bear market rally, a bear trap or call it a banana…we are not ignoring potential six-month 10-15 per cent rallies.

After May this [S&P 500] rally may be mostly over.

According to the AFR’s reporting, Stifel thinks that the US Federal Reserve will stop increasing interest rates in June when it hits 5.25%. This could lead to business earnings hurting in the second and the possibility of a recession increasing in September as the labour market’s strength “wanes”.

Another expert, Fundstrat Global’s Tom Lee, thinks that the S&P 500 is going to rise for the next eight weeks.

While Lee acknowledged uncertainty after a strong performance by the S&P 500 since October 2022, he suggested that the S&P 500 could reach around 4,250 by the end of April. That would represent an increase of around 5%. Lee said:

This is a scenario that many investors are hesitant to embrace (more likely sceptical) because of the understandable lack of clarity on inflation trajectory, Fed policy path, earnings risk and general heightened concerns about recession.

And as usually is the case, when there is uncertainty, investors lean negative—meaning, the conditions confirm investors leaning bearish or outright bearish

S&P 500 snapshot

For investors wanting to own a piece of the S&P 500, there’s an investment option called the iShares S&P 500 ETF (ASX: IVV). Over the past five years, it has risen by around 70%, though past performance is not a reliable indicator of future performance.

The post S&P 500 could rally for next 8 weeks: Wall Street analysts appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ishares S&p 500 Etf right now?

Before you consider Ishares S&p 500 Etf, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ishares S&p 500 Etf wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of March 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Y0E4J16

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s