Wall Street's three major giants remain bullish on US stocks: Geopolitical shocks do not change the bull market

Odaily reported that strategists from major Wall Street banks stated that despite the risks posed by the Iran war, their bullish outlook on the US stock market remains valid. Rising oil prices, concerns over living costs, and uncertainty about the Federal Reserve's interest rate outlook have led the S&P 500 Index (SPX) to experience its worst two-week performance since the tariff turmoil in April last year. Nevertheless, strategists from Goldman Sachs, Morgan Stanley, and JPMorgan pointed out that earnings growth and valuations provide support. Although valuations remain high, they are not as extreme as before. Wilson set a year-end baseline target for the S&P 500 Index at 7,800 points, implying about 18% upside from last Friday's closing. Snyder from Goldman Sachs expects the benchmark index to rebound to 7,600 points.

As the war enters its third week, the sharp rise in crude oil has pushed up US Treasury yields and weakened bets on Federal Reserve rate cuts, as inflation concerns intensify. The Strait of Hormuz has become a focal point, and any prolonged disruption would heighten worries about the deepening global economic risks brought by the conflict. Nevertheless, since the outbreak of the Iran war, the US stock market has only seen a moderate decline so far, with less than 20% of developed market stocks in technically oversold territory. (Golden Ten Data)