Live Chat

Swiss bank UBS

UBS ups year-end S&P 500 forecast for 2024 to 5,150

In a notable update, a team of strategists at UBS Global Research led by Jonathan Golub have revised their year-end stock outlook for the benchmark S&P 500 index. They now anticipate the index to end the year at 5,150 — up from their previous forecast of 4,850.

Last year, the team’s outlook had already signaled the likelihood of a favorable outcome for stocks, citing robust earnings, easing inflation, accommodative monetary policy, and an improved economic environment. In a note cited by MarketWatch reporter Barbara Kollmeyer, Golub and his UBS colleagues wrote:

“Given the Fed’s recent pivot, subsequent decline in rate expectations, and above-trend 2024 [earnings per share] revisions, we now embrace this upside scenario as our base case”.

Their S&P 500 forecast for 2024 is now higher than UBS’s wealth management arm, which recently upped their index target to 5,000.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

UBS forecast revision comes amid challenging start for equities in 2024

This optimistic projection from UBS comes amid a challenging start for stocks, with concerns that investors, driven by overly optimistic expectations of Federal Reserve interest rate hikes, may have rushed into the market too hastily.

Despite the volatility, the S&P 500 was only 0.27% away from its record close in January 2022 as of last Friday.

The updated S&P 500 target by UBS amounts close to an 8% potential upside from the index’s current level — it closed about 0.1% higher on Friday at 4,783.83 points. Markets were closed in the U.S. on Monday for the MLK Day holiday.

UBS also raised their 2024-25 earnings per share estimate to $225 from $235 and $246 to $250, respectively.

“Importantly, our growth estimates of 6.3% and 6.4% over the next 2 years are below the consensus of 11.4% and 12.8%. While earnings should drive 2024 returns, falling interest rates should support incrementally higher multiples,” Golub and his associates said.

UBS's new S&P 500 target positions it among the higher forecasts on Wall Street for 2024. Yardeni Research leads with a 5,400 target, while JPMorgan has a more conservative estimate at 4,200. Goldman Sachs also raised its forecast to 5,100 from 4,700 in late December.

UBS S&P 500 forecast optimistic — other projections see vulnerable USD, well-supported gold in 2024

The end of 2023 saw several financial institutions sketch out projections for the coming year, with many adopting a more cautious outlook for the global economy than the one issued by UBS earlier today.

Opinions on the U.S. dollar’s potential trajectory were mixed, with a Reuters poll indicating that the USD may decline against G10 currencies in 2024. U.S. dollar forecasts from HSBC and Citibank’s Wealth Management division in Hong Kong indicated that they saw the USD remaining strong this year, while a projection from Societe Generale’s Kit Juckes noted the DXY index may decline to 97 (the DXY traded at 103.23 as of January 16).

A gold price forecast overview by Markets.com in late 2023 shed light on several investment banks’ outlooks for the commodity. Australia-based ANZ Bank and Japan’s MUFG appeared highly bullish on the yellow metal, forecasting it to potentially hit record highs in 2024 on the back of three key factors: interest rate reductions, geopolitical risks, and central bank buying.

Analysts at Germany-based technology firm Heraeus were more reserved, saying that gold could potentially trade within the $1,880 and $2,250 range, with interest rates playing a key factor.

Wall Street banks were also split in their U.S. interest forecasts for 2024, with UBS notably projecting an aggressive series of rate cuts by the Federal Reserve, which aligns with its base-case scenario for the S&P 500 this year.

When considering foreign currency (forex) and indices for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Sunday, 22 December 2024

Indices

Bitcoin ETFs Experience Record Outflows Amid Crypto Market Decline

Thursday, 19 December 2024

Indices

Analyst revises Amazon stock forecast following major 'moonshot' initiative

Thursday, 19 December 2024

Indices

Stock market today: 3 bullish stocks that J.P. Morgan Just Upgraded

Thursday, 19 December 2024

Indices

Bitcoin news today: Jerome Powell Says Fed Won’t Hold Bitcoin

Live Chat