That is what would occur if equities, despite many cuts this week, rebounded to the median of the S&P 500 estimates from Wall Street banks gathered by MarketWatch, which is 6,400.
A Reuters story claims that Bank of America’s target was lowered from a wicked 6,666 to a more modest 5,600, while Oppenheimer’s maximum target of 7,100 was lowered to 5,950.
At 7,000, Deutsche Bank currently has the highest target of any Wall Street company.
Investors should not take these predictions too literally, cautions Lori Calvasina, head of U.S. equities strategy research at RBC Capital Markets, who has lowered her projections twice this year.
As a signaling device intended to represent our overall assessment of the direction that equities are likely to go, we consider our price objective as a compass rather than a GPS. Similar to how most stock analysts update their company-level projections continuously throughout the year, we intend to update our price objective as usual if/when new information pertinent to our forecast becomes available,” she says.
Following two significant declines on Thursday and Friday, the S&P 500 SPX ended a volatile session on Monday at 5,062.25, down 0.2%. As investors respond to President Donald Trump’s barrage of tariff pronouncements, the index is down 15% from its peak in mid-February.
