Factbox-Brokerages lift S&P 500 target on hopes for soft landing, rate cuts

Factbox-Brokerages lift S&P 500 target on hopes for soft landing, rate cuts

Following are forecasts from some major banks on economic growth, inflation, and how they expect certain asset classes to perform:

Forecasts for stocks, currencies and bonds:

S&P 500 US 10-year EUR/USD USD/JPY USD/CNY

target yield

target

Goldman Sachs 4.00% 1.12 145 7.05

5,600

Morgan Stanley 1 140 7.5

5,400(for

June 2025)

UBS Global 5,200 3.85% 1.09 148 7.25

Wealth

Management*

Wells Fargo 5,100-5,300 4.25-4.75% 1.06-1.10 156-160

Investment

Institute

Barclays 5,300 4.25% 1.09 145 7.20

J.P.Morgan 4,200 3.75% 1.13 146 7.25

BofA Global 5,400 4.25% 1.12 155 7.45

Research

Deutsche Bank 5,500 4.60% 1.07 135

Citigroup 4.30% 1.02 135 7.25

5,600

HSBC 5,400 3.00% 1.05 145 7.10

Oppenheimer

5,500

UBS Global 5,600 4.0% 1.05 160 7.15

Research*

Evercore ISI 6,000

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

—-

U.S. INFLATION

U.S. consumer prices were unexpectedly unchanged in May amid cheaper gasoline, but inflation likely remains too high for the Federal Reserve to start cutting interest rates before September against the backdrop of a persistently strong labor market.

U.S. inflation (annual Y/Y for 2024)

Headline CPI Core PCE

Goldman Sachs 2.50% 2.5%

Morgan Stanley 2.10% 2.70%

Wells Fargo 3.0% 2.60%

Investment

Institute

Barclays 2.70% 2.4%

J.P.Morgan 2.50% 2.50%

BofA Global 3.5% 2.8%

Research

Deutsche Bank 3.10%

Citigroup 2.0% 3.0%

HSBC 3.4%

—–

Real GDP growth forecasts for 2024

GLOBAL U.S. CHINA EURO UK INDIA

AREA

Goldman 2.7% 5.0% 0.8% 0.9% 6.6%

Sachs

2.2%

Morgan 2.8% 1.9% 4.2% 0.5% -0.1% 6.4%

Stanley

UBS Global 3.1% 2.4% 4.9% 0.6% 0.2% 7.0%

Wealth

Management*

Barclays 2.6% 1.2% 4.4% 0.3% 0.1% 6.2%

J.P.Morgan 5.2%

0.8%

2.6% 2.2% 0.9% 6.5%

BofA Global 3.0% 2.5% 5.0% 0.6% 5.8%

Research

0.7%

Deutsche 3.2% 2.4% 5.2% 0.9% 0.8% 7.0%

Bank

Citigroup 1.9% 1.0% 4.6% -0.2% 0.1% 6.3%

HSBC 2.6% 2.3% 4.9% 0.5% 0.4% 6.3%

© Reuters. The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger

UBS Global 3.1% 2.3% 4.9% 0.6% 0.2% 7.0%

Research*

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