Citi Sees S&P 500 Soaring to 7,000 in Bull-Case Scenario – Here’s What Needs To Happen: Report

The third-largest US financial institution by belongings reportedly expects the S&P 500 to surge by as a lot as 16% from present ranges if the economic system achieves sure circumstances.

Citigroup analysts see the S&P 500 hitting 7,000 by the tip of the yr in a bull-case state of affairs, reports Barron’s.

In response to the analysts, a growth associated to synthetic intelligence (AI) and a “goldilocks” setting for the US economic system, powered by sustainable development, low inflation and low unemployment, might act as catalysts for a inventory market rally.

The Citigroup analysts say,

“The AI commerce appears to be gaining renewed momentum as we transfer additional previous DeepSeek. Capex spend continues to assist future development whereas stock-buyback exercise displays sturdy money flows and assured managements.”

The S&P 500 index ended buying and selling on Tuesday at 6,038 factors, about 2% beneath the all-time excessive of 6,166 factors reached in February.

Citigroup has additionally upgraded the bottom case year-end goal for the S&P 500 index from 5,800 factors, the megabank had assigned in mid-April, to six,300 factors.

Of their bear-case state of affairs, the Citigroup analysts have set a draw back goal of 5,200 factors for the S&P 500 index, per the report. Such an end result might come up on account of a light recession attributable to the tariffs the US authorities has put in place.

The Citigroup analysts say,

“Issues relating to consumption tendencies, coverage implications on charges/forex, with destructive financial read-through threat, all stay to be navigated.”

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