The current market decline has prompted one other Wall Road strategist to revise its S&P 500 forecast decrease for 2025.
On Friday, UBS World Wealth Administration head of US equities David Lefkowitz predicted earnings would are available weaker than beforehand anticipated, prompting a trim to the agency’s year-end worth goal to six,400 from 6,600 on the broad-based index.
“We nonetheless imagine that US shares can recuperate and publish positive aspects for the 12 months. Nonetheless, current financial weak spot and our expectation that tariffs will probably be on the larger finish of our base case prompts us to decrease our 2025 S&P 500 EPS estimate from USD 270 (8% development) to USD 265 (6% development),” Lefkowitz wrote in a notice.
“We subsequently trim our year-end S&P 500 worth goal from 6,600 to six,400,” he added.
On Friday, the S&P 500 was buying and selling slightly below the 5,600 degree. The index fell into correction territory earlier this month, falling 10% from its February file excessive.
At shut: March 28 at 4:46:18 PM EDT
Regardless of a sell-off in megacap shares, Lefkowitz nonetheless expects the market to reverse course and rise by the top of the 12 months, pushed partly by coverage readability, a pivot to pro-growth coverage initiatives, and AI funding.
UBS’s revision comes on the heels of a downwardly revised forecast from Goldman Sachs (GS) and RBC Capital Markets.
This week, Barclays (BCS) slashed its forecast on the benchmark index to five,900 from 6,600, based mostly on expectations for decrease earnings.
