Major brokerages have turned buoyant on the benchmark S&P 500 index, betting on resilient corporate earnings and stable U.S. economy, despite companies flagging hits due to tariffs.
As the gap widens between bullish targets from brokerages and cautious signals from companies, the market's trajectory may hinge on how effective tariff mitigation strategies would prove to be.
In the past week, UBS Global Wealth Management and Jefferies became the latest brokerages to raise their year-end S&P 500 targets.
U.S. equities have rebounded since hitting their lows in April following Trump's "Liberation Day" tariffs. Federal Reserve Chair Jerome Powell’s hints of interest rate cuts at the Jackson Hole symposium have also boosted market optimism.
The U.S. economy is expected to grow between 1% and 2% this year, according to estimates from leading brokerages.
