S&P 500 choppy on first trading day of 2022, remains close to record levels at just under 4800 By Frank_Macro SP500 Equities
inutes in wake of the 1430GMT equity cash open. Those lows under the 4760 level were the lowest such levels that the index has traded at in one week. However, at current levels around 4780, the index is trading with modest on-the-day gains of about 0.3%. That means the index is only about 0.
JP Morgan target 5050 by the end of 2022. “This represents a smaller percentage appreciation compared to our 2021 forecast; however, we do think international equities, emerging markets and cyclical market segments will significantly outperform and deliver two- to three-times higher returns” the bank says. “Increasing interest rates and marginally tighter monetary policy should be a headwind for high-multiple markets such as the Nasdaq”.
Not all banks agree, however. Morgan Stanley Wealth see the S&P 500 dropping to 4400 by the end of the year. “The core of our cautious 2022 view on the S&P 500 is our belief that during a midcycle transition, price-earnings ratios typically compress” the bank says. “As the market’s price-earnings ratio reverts to a more normal 18 from the current 22.5… If that is correct, the S&P 500 will be 3% lower a year from now even with an expected 14% gain in earnings”.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion | Count on 2022 being the year we put the pandemic behind us.speechboy71: The best way for America to return to normalcy is to make clear that being vaccinated against Covid is the price of admission for a return to normalcy.
Read more »
U.S. COVID cases continue to skyrocket and disruptions abound as 2022 beginsThe U.S. will soon mark two years since the first confirmed case of COVID-19 in the country, and the number of new infections has never been higher. Meanwhile, travelers are facing canceled flights.
Read more »
24 Hours of Le Mans 2022 - join us!The PistonHeads packages for both Le Mans 24 and the Le Mans Classic will be on sale in the new year - register your interest now! Le Mans 24 - Le Mans Classic -
Read more »
Five 2022 New Year’s Resolutions For The U.S. Airline IndustryA new year creates an opportunity to set some aspirational goals. For the U.S. airline industry, these are five goals that make sense for the industry as it continues in its economy recovery.
Read more »
Bay Area welcomes its first babies of 2022One was born 18 seconds after midnight in San Jose, another at 12:01 a.m. in Antioch.
Read more »
First snow of 2022Snow falls in Chicago on New Year's Day. A Winter Storm Warning was issued shortly after 11 a.m. Saturday and remains in effect until 6 a.m. Sunday for portions of northwest Indiana and northeast Illinois, according to the National Weather Service.
Read more »