Barclays and Stifel predict potential overhaul in S&P 500 and tech sector

From Nasdaq: 2024-06-21 14:19:15

Barclays and Stifel predict major changes for the S&P 500 and tech sector. They suggest the earnings growth gap between big tech companies and the rest of the S&P 500 may close by the end of this year. This could reduce tech’s dominance and lead to a broader market rally.

Analyst Venu Krishna believes that as tech’s earnings growth slows down, other S&P 500 companies will benefit, making the market healthier overall. On the other hand, Barry Bannister from Stifel predicts the S&P 500 could reach 6,000 by the end of 2024 but could drop to around 4,800 by mid-2026.

Bannister expects the S&P 500 to go up another 10% before the end of the year, but his year-end target is lower at 4,750. He mentions a possible 13% drop due to high inflation, weakening Bitcoin, and potential changes in the Fed’s approach to interest rates.

Bannister suggests that Bitcoin’s recent weakness could indicate a stock market correction. Historical patterns show that the S&P 500 tends to stay flat for about six months after Bitcoin hits a peak, and sometimes even drops. Bitcoin has fallen to below $64K from a high of $73,157 in March.

Analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY). Based on recent data, there have been 405 Buys, 91 Holds, and eight Sells. The average SPY price target of $601.03 per share implies a 10.5% upside potential.



Read more at Nasdaq: Barclays, Stifel: Big Changes Ahead for S&P 500 and Tech Stocks