HSBC Raises S&P 500 Target Amid Positive Earnings Outlook
HSBC Predicts Higher S&P 500 Target
HSBC has raised its year-end target for the S&P 500 to 5,400 for 2024, citing better earnings expectations driven by resilient GDP growth, recent earnings beats, and positive corporate sentiment.
Key Factors Behind the Forecast:
- Better earnings expectations
- Resilient GDP growth
- Positive corporate sentiment
HSBC's target is predicated on the Fed cutting rates in June with 75bp total cuts in 2024, in line with consensus and Fed expectations based on the recent dot plot.
HSBC expects higher volatility in the second half of 2024 due to the US presidential election, elevated earnings expectations, and increasing focus on Fed rate actions from investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.