Economists at US banking giant Wells Fargo say they will cut their outlook for the S&P 500 this year due to concerns over the ongoing war in Iran.
Wells Fargo predicts that the S&P 500 will close the year at 7,300, down from its latest forecast of 7,800, which would indicate a modest 7% return on the index in 2026. reports Bloomberg.
The updated opinion would be a rally of 11% from the current level of the S&P 500, after a major correction in the war between the US and Iran, which began five weeks ago. The S&P 500 is hovering around 6,575 points at the time of writing.
Ohsung Kwon, Wells Fargo’s chief market analyst, said in a note to investors that he remains bullish on the stock market as he points to inflation as the biggest threat looming in the second half of the year as the war continues to wreak havoc on the economy and the stock market.
“We’re including an emerging threat that wasn’t our problem by year…
The storm is getting stronger every day. ”
Kwon also says that investors seem to be hedging and not selling their positions as has happened in other periods of market uncertainty.
Meanwhile, stocks began to recover losses this week after President Donald Trump said he wants an end to the war with Iran, even though the Strait of Hormuz remains closed.
Many other analysts are not rehashing pre-war market predictions. However, JPMorgan Chase also lowered its forecast slightly.
Meanwhile, Morgan Stanley’s Chief Equity Strategist and Chief Investment Officer Mike Wilson predicts that US stocks are close to the bottom, and banking giant Barclays actually raised their year-end forecast for the S&P 500 based on strong corporate profit growth, despite the war.
Follow us X, Facebook and Telegram
Don’t Miss Out on Success – Register to receive email notifications straight to your inbox
See Price Action
Swimming Daily Hodl Mix
 
Disclaimer: The views expressed in Daily Hodl are not financial advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any assets including cryptocurrencies, nor is The Daily Hodl a financial advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image Created: Midjourney
