The bull case for stocks is growing among Wall Street strategists

Key Points

  • Wall Street strategists remain optimistic about stock performance, maintaining S&P 500 year-end targets between 6,300 and 6,500, despite signs of a cooling labor market and economic slowdown.
  • Morgan Stanley's Mike Wilson suggests that a moderate growth slowdown is already priced into the market, with stocks often moving ahead of lagging economic data.
  • Goldman Sachs' David Kostin notes that S&P 500 returns correlate more with soft economic data (like consumer surveys) than hard data (like jobs reports), projecting a target of 6,500.
  • Citi's Scott Chronert raised the S&P 500 target to 6,300, citing reduced tariff uncertainty and stabilizing economic growth forecasts, with a preference for growth stocks like Big Tech.

Summary

Wall Street strategists are maintaining a bullish outlook on stocks despite indications of a cooling labor market and slowing economic activity. Firms like Morgan Stanley, Goldman Sachs, and Citi have set S&P 500 year-end targets between 6,300 and 6,500, with the index recently trading near 6,010. Morgan Stanley's Mike Wilson argues that a moderate growth slowdown is already reflected in stock prices, while Goldman Sachs' David Kostin highlights that S&P 500 returns align more with soft data (e.g., consumer surveys) than hard data (e.g., jobs reports), predicting sustained equity gains if soft data recovery continues. Citi's Scott Chronert recently raised his target to 6,300, pointing to easing tariff concerns and stabilizing growth forecasts, favoring growth stocks like Big Tech amid high valuations and interest rates. Despite weaker economic indicators—such as low job additions in May and rising unemployment claims—strategists believe the worst fears, including tariff-driven inflation, may be behind us. However, they caution that a sharper-than-expected economic slowdown remains a key risk.

yahoo
June 10, 2025
Stocks
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