The biggest US bank is cutting its year-end target for the S&P 500, warning that tensions in the Middle East are undermining the index’s potential.
A group of JPMorgan Chase analysts, led by Fabio Bassi, says the bank is reducing its final target for 2026 for the S&P 500 from 7,500 to 7,200, noting that the decline in oil passing through the Strait of Hormuz could affect US corporate profits and economic growth. reports.
More information demonstrations that an average of five to six ships a day have been passing through the strait since the conflict began, a drop of 95% from the 138 ships that were struck earlier.
Then he said,
“Concerns about the country’s climate and long-term rising energy prices are leading to lower global demand and higher prices.”
According to Bassi, shocks in oil prices add to the financial pressure on companies in a market that is already facing AI disruption fears and private debt stress.
“On earnings, oil at ~$110 by the end of the year means a 2-5% cut to the S&P 500 consensus EPS, with more pressure if the grid goes up. The long-term risk is more compounded as investors reassess growth and revenue rather than a recession.”
At the time of writing, the S&P 500 is valued at 6,591, which represents more than 9% from the bank’s year-end performance. Currently, US Crude Spot (WTI) is trading at $95.36 per barrel.
Follow us X, Facebook and Telegram
Don’t Miss Out – Sign up 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
