Ubs Sets Target For Sp 500 By Year End

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Ubs Sets Target For Sp 500 By Year End

UBS Sets 4700 Target For S&P 500 By Year End

According to economists from UBS, the S&P 500 index from the USA will likely touch 4700 points by the end of 2023. The S&P 500 continues to enjoy consistent weekly gains as the index has already been up by almost 19% since 2023's start.

In addition, the S&P 500 is also just 1% below the yearly high, which suggests that the index is all set to close a good year.

S&P 500 Faces Numerous Risks

The last trading price of the S&P 500 was 4719, which suggests that the yearly end will lead to a decline of -19 points. However, the forecasts made by third parties should be viewed as just forecasts. So, there's always a chance that the S&P 500 may close above or below the 47K handle.

Although the mood in the stock markets is upbeat, there are several risks that could lead to a downside. That's why the UBS added that 2024 will only lead to modest gains in the S&P 500 & other indices.

As for the risks that can lead to a downside in the S&P 500, DJIA, & other indices, the first one is a decline in inflation. The markets will be shocked once again if the pace of the inflation slowdown comes to a halt or changes to an uptick in inflation.

This will lead to higher chances of the US economy facing a hard landing or going into recession. The reason is that the Fed will be forced to keep the interest rates higher for the rest of the year 2024. We already know that periods of high interest rates are not exactly ideal for stock indices such as the S&P 500.

The higher interest rates affect consumer demand, which ultimately leads to less revenue for US companies. In addition, it also raises the borrowing cost, which ultimately affects the companies' bottom line. Not to mention that it also hinders the companies from expanding, which leads to slower economic growth.

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