HSBC becomes latest brokerage to cut S&P 500 annual target below 6000 mark

Reuters

Tue, Apr 29, 2025, 6:17 AM 1 min read

(Reuters) - HSBC connected Tuesday became the latest planetary brokerage to slash its year-end people for the S&P 500 scale beneath the 6000 mark, weighed down by slower U.S. economical maturation and tariff-related unit connected firm earnings.

The London-based brokerage chopped its people to 5600 from 6700, which is successful enactment with BofA Global Research's forecast.

"Nearer term, the marketplace should commercialized betwixt recession and stagflation fears until the Fed cuts and tariff turmoil subsides," said HSBC strategists successful a note.

Global brokerages person been aggressively revising their targets for the benchmark scale pursuing Trump's evolving tariff argumentation arsenic they are expected to dent firm America's net and propulsion the U.S. system into a apt recession.

The wide tracked U.S. benchmark scale has fallen 6% truthful acold this year.

"Uncertainty should headdress valuations fixed the deficiency of visibility to semipermanent net growth," HSBC said, arsenic it trimmed its earnings-per-share estimation for the scale by 5% to $255, which is beneath the statement expectations of $264.

The brokerage's basal lawsuit for this twelvemonth is that the world's largest system volition debar some a recession and stagflation.

On a quarterly basis, it forecasts GDP maturation of 1% for the twelvemonth and expects the Federal Reserve to present its adjacent complaint chopped successful June.

Given the uncertain macro backdrop, HSBC prefers antiaircraft stocks that see ample caps and worth stocks.

(Reporting by Siddarth S and Kanchana Chakravarty successful Bengaluru; Editing by Vijay Kishore)