Citi Is the Latest Bank to Get More Bullish on the S&P 500

Is S&P 500 more to run this year? City analysts say it marks the latest bank to be more optimistic about the approach to American stocks.

Bank analysts late Friday night to 6,300 their year end targets for the benchmark index, which means about 5% premium above about 6,000 of the previous week. He cited renewed confidence in “AI-related opportunity” and “better income growth expectations”.

“No doubt, policy instability is likely to remain as many other risks,” City has written, pointing to a list of issues – including tariffs, taxes, budgets, interest rates and geopolitics – it is likely to remain on the minds of investors. “It keeps us mitted to chase rallies, but is more inclined to buy a pullback. What the first half has told us is that fundamental instability can be more manageable.”

Many banks have recently promoted their targets after cutting them in view of President Donald Trump’s “liberation day” tariff announcements that shake the markets. Deutush Bank last week to 6,550, while the target in Barclay is now 6,050. The latest target in UBS matches City.

While the approach to the US trade policy is made in the flux – American and Chinese authorities were designed to meet today for talks – CTI believes that investors’ reactions may be more moderate than seen earlier this year.

“Tariff shock has disintegrated, yet more instability should be expected on it,” he wrote. “In our view, the administration is not ready for the weather angle and component pushback from a more severe tariff path. A country will probably be posting asanas for high tariff rate hazards on a country, as well as additional sectoral tariffs are imposed, but we do not think it would produce the same shock/wonder that will be set from April drawdown.”

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