Stock Groups

Factbox-Wall Street analysts’ 2022 outlook for S&P 500 -Breaking


© Reuters. FILE PHOTO: A road signal for Wall Road is seen within the monetary district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid

(Reuters) -Wall Road analysts have begun rolling out their predictions for U.S. fairness markets in 2022. The benchmark has risen practically 25% up to now this yr. It closed at 4,701.21 on Wednesday.

Here’s a abstract of some analysts’ forecast for the index:


@ END 2022

Morgan Stanley (NYSE:) 4,400

Wells Fargo (NYSE:) 5,100-5,300

Goldman Sachs (NYSE:) 5,100

RBC 5,050

BofA International Analysis 4,600

Credit score

Suisse 5,200

Morgan Stanley: “Whereas earnings for the general index stay sturdy, there will probably be higher dispersion of winners and losers and development charges will sluggish materially… 2022 will probably be extra about shares than sectors or types, in our view.”

Wells Fargo: “Persistent provide shortages and inflation pressures lead us to regulate the magnitudes of some 2022 targets, however we imagine the worldwide financial system ought to nonetheless mark an above-average tempo subsequent yr. Extra importantly, our tactical preferences for the following 6 to 18 months are practically all unchanged.”

Goldman Sachs: “Decelerating financial development, a tightening Fed, and rising actual yields counsel traders ought to count on modestly below-average returns subsequent yr.”

“In distinction with our expectation through the previous yr, company tax charges will probably stay unchanged in 2022 and rise in 2023. Company earnings will develop and elevate share costs. The fairness bull market will proceed.” RBC: “We proceed to see 2022 as a strong yr for the U.S. fairness market, however with extra average positive factors than we have skilled in 2021.”

“Whereas we stay vigilant on margins, we do not assume it is smart to imagine the worst on this entrance given the sturdy observe document that corporations have had managing by value pressures even earlier than the pandemic.”

Credit score Suisse (SIX:): “This constructive outlook is predicated on strong projections for financial development in each actual and nominal phrases, additional margin upside in cyclical teams, a pickup in buybacks and a good low cost charge regardless of Fed tightening.”

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