US stock markets are expected to benefit from delays in implementing tariffs announced earlier this year, according to Wells Fargo’s Investment Institute. The bank has raised its S&P 500 target range for the end of the year to 6,300-6,500, citing a mitigating effect on economic growth slowdown and extending a “soft patch” into early 2026.
The delays in tariff increases will reduce the impact of frontloaded tax cuts and deregulation, which were expected to boost the market earlier this year. Wells Fargo strategist Darrell Cronk had previously forecasted the S&P 500 to end 2025 between 5,900 and 6,100. The recent sell-off was largely due to President Trump’s initial announcement of steep tariffs on imported goods, but subsequent delays have helped the index recover.
The S&P 500 recently hit a fresh record high of 6,481.34, with Wells Fargo attributing this to improved investor sentiment and forecasted equity earnings and returns. However, not everyone shares this optimism. Evercore ISI’s Julian Emanuel has warned that the benchmark could pull back by 7% to 15% from current levels, citing concerns over Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium.
UBS’ wealth management arm also expects “near-term volatility” in the market due to elevated equity valuations. David Lefkowitz, head of U.S. equities, notes that the economic impact of US tariffs is currently weakening labor markets and inflation rising, but still expects stocks to be higher a year from now.
Source: https://www.cnbc.com/2025/08/18/wells-fargo-hikes-sp-500-target-as-us-tariffs-get-delayed-again.html