inutes in wake of the 1430GMT equity cash open. Those lows under the 4760 level were the lowest such levels that the index has traded at in one week. However, at current levels around 4780, the index is trading with modest on-the-day gains of about 0.3%. That means the index is only about 0.
JP Morgan target 5050 by the end of 2022. “This represents a smaller percentage appreciation compared to our 2021 forecast; however, we do think international equities, emerging markets and cyclical market segments will significantly outperform and deliver two- to three-times higher returns” the bank says. “Increasing interest rates and marginally tighter monetary policy should be a headwind for high-multiple markets such as the Nasdaq”.
Not all banks agree, however. Morgan Stanley Wealth see the S&P 500 dropping to 4400 by the end of the year. “The core of our cautious 2022 view on the S&P 500 is our belief that during a midcycle transition, price-earnings ratios typically compress” the bank says. “As the market’s price-earnings ratio reverts to a more normal 18 from the current 22.5… If that is correct, the S&P 500 will be 3% lower a year from now even with an expected 14% gain in earnings”.
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