Deutsche Bank has raised its year-end forecast for the S\&P 500 index from 6,150 to 6,550 points, citing the diminishing impact of tariffs on corporate earnings and the resilience of the U.S. economy. This comes amid a wave of upward target revisions from major Wall Street institutions.
The update follows similar moves by Goldman Sachs and UBS Global Wealth Management, both of which raised their projections in May. RBC Capital Markets also joined the trend on Monday.
In a note, Deutsche Bank stated: “We now see the impact of tariffs as roughly one-third of what we previously expected.”
The new target represents a 10.35% increase from the index’s most recent close at 5,935.94 points.
The S\&P 500 posted its best monthly performance since November 2023 in May, buoyed by a more flexible stance on tariffs from U.S. President Donald Trump, along with strong earnings results and moderate inflation data, which helped the market recover from April’s pullback.
Despite the optimism, Deutsche Bank warned that the upward path may be marked by volatility, with the potential for sharp pullbacks due to renewed trade tensions. “We expect the market to go through periods of sharp declines amid recurring cycles of escalation and de-escalation in trade policies,” the bank said.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
