Wall Street's Three Major Investment Banks Maintain Bullish Outlook on US Stocks, S&P 500 Target Price Eyes 7800 Points

Gate News reports that on March 16, as the Iran conflict enters its third week, strategists from the three major Wall Street investment banks say that despite geopolitical risks, their bullish outlook on the U.S. stock market remains valid. Rising oil prices, concerns over living costs, and uncertainty about Federal Reserve interest rate prospects have driven the S&P 500 index—the benchmark for U.S. stocks—out of its worst two-week performance since the tariff turmoil in April last year. Nevertheless, strategists from Goldman Sachs, Morgan Stanley, and JPMorgan Chase point out that earnings growth and valuations provide support. Although valuations are still high, they are no longer as extreme as before. Morgan Stanley’s Wilson projects a year-end target of 7,800 points for the S&P 500, implying about an 18% upside from last Friday’s close; Goldman Sachs’ Snyder expects the index to rebound to 7,600 points. As the war enters its third week, a sharp rise in oil prices has pushed up U.S. Treasury yields and diminished expectations of Fed rate cuts amid growing inflation concerns. The Strait of Hormuz has become a focal point, with any prolonged disruption heightening fears of global economic risks from the conflict. Despite this, since the outbreak of the Iran war, the U.S. stock market has only experienced mild declines, with less than 20% of developed market stocks in technically oversold territory.