BlockBeats news, on August 11, Citigroup strategists raised their target for the S&P 500 index, stating that tax cuts should offset the negative impact of tariffs on U.S. companies. The team led by Scott Chronert raised the year-end target for the index from 6300 points to 6600 points, implying that the index will rise about 3% from last Friday's close.
This quarter's earnings reports performed better than expected, with almost no negative impact from tariffs on performance, driving the stock market to new highs this month. Data from institutions show that over 81% of S&P 500 index constituent companies exceeded expectations, the highest level in seven quarters. The Citigroup team stated that companies not only 'performed well' but also mostly maintained their expectations for performance in the second half of the year.
Therefore, the market consensus expectation for earnings per share is being raised. They have raised the earnings per share expectation for S&P 500 index constituent companies for 2025 from the previous $261 to $272, and for 2026 from $295 to $308. They stated that the higher earnings forecast will not have a significant impact on valuation assumptions. They expect that by mid-2026, the index will rise to 6900 points, an increase of about 8% from the current level. (Jin Shi)
