Is the market resilient to concerns? Here’s what the well-known bank expects
Bank HSBC updated its forecasts for the S&P 500, which now projects that by year‑end the index will reach 7,650 points, up from the previous forecast of 7,500 points.
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Economists cited strong optimism around investments in artificial intelligence and expectations of solid earnings growth for U.S. companies.
“Although earnings remain a supportive factor, sentiment is less stable,” they said.
Even though the index ended April with the largest monthly percentage gain since November 2020, most stocks remain below their 52‑week highs.
HSBC experts say this situation “suggests potential for further gains if market interest expands,” especially regarding companies in the so‑called “Great Seven.”
Reuters notes that the bank’s analysts omitted concerns about high oil prices, which, amid the prolonged Middle East conflict, fuel inflation worries.
They added that the S&P 500 index could exceed 8,000 points if higher valuations of tech companies coincide with a broader sectoral rebound, AI‑driven earnings growth, and favorable economic conditions.
Meanwhile, Donald Trump announced the rejection of Iran’s Middle East peace conditions, calling them “unacceptable.”
He mainly referred to uranium enrichment by Tehran, which has become a major obstacle in ongoing negotiations.
“The latest response does not address the U.S. demand for pre‑commitments on the fate of Iran’s nuclear program and high‑enriched uranium stocks,” the Wall Street Journal reported, citing sources familiar with the matter.
The paper claims that “instead Iran proposes ending hostilities and gradually opening the Strait of Hormuz for trade as the U.S. lifts its blockade on Iranian vessels and ports.”
“Iran proposes that part of its high‑enriched uranium be diluted, and the rest transferred to a third country,” the sources added.
More on this in the article: The dollar’s direction changed. Trump rejects Iran’s proposals
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S&P 500 index at Friday’s close
The S&P 500 closed on Friday, May 8, up 0.84% to 7,398.92 points.
According to HSBC’s predictions, the index could rise by about 3.4% by year‑end.
Chart. S&P 500 index price
Source: TradingView.
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Source: Reuters.
