Wall Street Analysts Still See Strong S&P 500 Rally Despite Forecast Cuts

Despite recent market volatility and downward revisions, Wall Street analysts continue to project a significant rally for the S&P 500 by the end of the year, Market Watch reports.

Even after a series of target reductions, the median year-end forecast from major banks suggests the index could climb to 6,400—representing a 26% gain from Tuesday’s levels.

Several financial institutions have adjusted their expectations amid economic and policy shifts. Oppenheimer, which initially set its S&P 500 target at 7,100, has now lowered it to 5,950. Similarly, Bank of America reduced its projection from 6,666 to 5,600. Meanwhile, Deutsche Bank currently holds the highest forecast at 7,000.

Despite these adjustments, analysts maintain an overall optimistic outlook. Lori Calvasina, head of US equity strategy research at RBC Capital Markets, cautions against viewing these targets as fixed predictions.

“We see our price target as a compass, not a GPS,” she explains.

The S&P 500 closed Monday at 5,062.25, marking a slight 0.2% decline after sharp drops on Thursday and Friday. The index remains 15% below its mid-February peak, reflecting investor concerns over recent tariff announcements from President Donald Trump and broader economic uncertainty.