Investors and 401(k)s have recovered significant ground since President Donald Trump’s sweeping tariffs announced April 2 dealt a blow to the S&P 500 index SPX and other major U.S. equity gauges.
That’s been credited with helping the S&P 500 climb back to 5,970 as of Wednesday’s close, 19.8% above its April 8 low, according to Dow Jones Market Data.
Barclays bumped its S&P 500 target up slightly to 6,050 from 5,900, becoming the latest big bank to make upward adjustments.
As of Wednesday, the S&P 500 was still 2.8% below its Feb. 19 record close.
1 rule is this is not a hero’s market,” Calcagni said, adding that investors shouldn’t own just one stock or even one single asset class.
After President Donald Trump’s sweeping tariffs announced on April 2 dealt a blow to the SandP 500 index SPX and other major U.S. stocks, investors and 401(k)s have made significant progress. A. equity indicators.
Despite U.S. A. Adding yet another possible twist to the on-again-off-again tariff dynamic, courts have entered the fray.
But for the most part, Wall Street’s perception that the worst-case tariff scenario seems to be out of the question was countering tariff jitters. As of Wednesday’s close, the S&P 500 was 19 points higher than its April 8 low at 5,970, thanks in part to that, according to Dow Jones Market Data.
However, it might be difficult to get a firm hold on the 6,000 level.
Donald Calcagni, the chief investment officer at Mercer Advisors, stated over the phone on Wednesday that the number itself is meaningless. He asserted that company profits, interest rates, and valuations are what really count.
Calcagni stated that, in light of all the uncertainty that lies ahead, equity valuations appear “pretty high” based on the S&P 500’s recent price-to-earnings estimate of about 21.
Chief market strategist Richard Steinberg of Focus Partners Wealth also sees possible roadblocks to maintaining the 6,000 milestone, particularly with the Federal Reserve, large corporations, and investors all in a state of wait-and-see.
In reference to the Republican tax and spending megabill that is pending Senate action, Steinberg stated, “I think it’s a tough road for the president,” but that opposition to the comprehensive plan is “in a healthy part of the phase.”.
Republicans may find that they “can’t always get what you want” in this situation, he said. The markets, in my opinion, accept that. “”.
Elon Musk is the CEO of Tesla, Inc. TSLA, a former top Trump adviser, increased the ambiguity surrounding the bill’s future on Tuesday by denouncing it as a “abomination.”. “”.
The economy also sparked worries on Wednesday after data revealed unexpected weakness in private-sector employment in May and indications of additional possible cracks in what is referred to as the hard data.
See: To avoid tariffs, auto buyers pushed sales to a four-year high. Gas is now running low in sales.
The stock market is currently 10 to 15 percent overpriced, according to Calcagni of Mercer, who also predicted that “the next shoe to drop” would probably occur “on or around July 9.”. A 90-day halt on some of Trump’s tariffs is scheduled to end at that time.
Wall Street equity strategists, meanwhile, have been hard at work raising their year-end stock market targets. Barclays was the most recent major bank to raise its S&P 500 target, moving it up marginally from 5,900 to 6,050. The S&P 500 remained 2 points 8 percent below its February level as of Wednesday. 19 record close.
Calcagni anticipates consequences from tariffs and the U.S. S. . Investors should diversify their holdings outside of the U.S. market as the deficit will have a significant impact on stocks in the coming weeks. A. bonds as well as stocks.
He informed MarketWatch that the bond market has the “ultimate power” because it will finance all of this debt. “”.
According to the Congressional Budget Office’s Wednesday estimate, the Republican bill would increase the federal deficit by $2.04 trillion. According to an analysis of CBO projections, actual U.S. S. . shortfalls during the previous 25 years.
“The No. Calcagni stated that investors should not own a single stock or even a single asset class, adding that “this is not a hero’s market.”. Rule No. 2. He stated, “The safe-haven assets of yesterday will not be the safe-haven assets of tomorrow.”.
