Wall Street firms BofA and Oppenheimer have cut their year-end targets for the S&P 500 index below 6,000 due to risks from a deepening global trade war. This follows recent downward trends in the benchmark index, which has slumped more than 20% from its all-time high.
Oppenheimer reduced its target to 5,950, while BofA lowered it to 5,600, making it one of the lowest on Wall Street. The S&P 500 index closed at 5,074.08 last Friday.
Investors are flocking to safe-haven assets as concerns grow that President Donald Trump’s tariffs could trigger a recession in the US economy. Oppenheimer’s chief investment strategist, John Stoltzfus, said the equity market appears oversold, with uncertainty levels making it difficult for investors to make decisions.
Despite reducing its targets, Oppenheimer maintains a “bullish outlook” towards US equities and believes its revised expectations do not imply a loss of confidence in the market. The firm attributes its adjustments to setting reasonable expectations for stock price recovery based on increasing uncertainty.
Source: https://www.reuters.com/markets/us/bofa-oppenheimer-latest-wall-st-slash-sp-500s-annual-target-2025-04-07