The stock saw a bright opening on Monday. The market shows even more resilience amid new forecasts for the S&P 500 by Citigroup strategists.
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- Stocks were mixed on Monday, with key indexes hovering near the flatline as investors targeted more profits.
- Citigroup Inc. strategists raised 2025 targets from the S&P 500 to the 6,600 and 6,900 in mid-2026.
Dow Jones Industry Average rose 67 points, with the S&P 500 adding 0.01%, and the NASDAQ composite hovered to the flatline.
Stocks are pretty much flatter, but a slightly brighter opening has made Wall Street a course for the start of this week's victory, with traders set to focus on key factors such as US inflation data, tariffs and geopolitical landscapes.
Citigroup will raise the 2025 S&P 500 target
Despite the negative catalyst, the stock market is in a winning mood, so Citigroup strategists predict that the S&P 500 index will be higher. According to City, the benchmark index will benefit from tax cuts. This is a scenario that is likely to offset the drawback effects of tariffs.
Citigroup strategists predict that the S&P 500 will reach 6,600 by the end of the year. This is the goal of increasing the index by 3% from around 6,300 last week. Index's bullish catalyst includes better revenue than expected, including 81% of companies reporting to date that have broken analyst estimates.
Wall Street is making these profits despite the customs environment, with key transactions and ongoing corporate strength supporting buyers. The forecast puts the S&P 500 annual earning allowance at $272 in 2025, down from its $261 target to $272. Overall, strategists predict that the S&P 500 will increase by about 8% to 6,900 by mid-2026.
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Tariffs and inflation data continue to focus
In the short term, investors will focus on semiconductor and drug imports, the geopolitical environment, and sector tariffs on consumer price index data scheduled to be released Tuesday. The producer's price index is set on Thursday, followed by the retail sales report on Friday.
Interest rates are particularly important market factors, and the Federal Reserve is expected to raise prices in September. Gov. Michelle Bowman, one of the people opposed the central bank's move to not change interest rates at the last meeting, says he is looking at three interest rate cuts in 2025.
Not cutting December risks hurting the labor market and slowing the US economy even further, Bowman said.
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