From Yahoo Finance: 2025-06-03 15:00:00

The S&P 500 is nearing all-time highs, with Wall Street strategists predicting further gains. Deutsche Bank’s Bankim Chadha raised his year-end target to 6,550, citing lower US effective tariff rates and reduced earnings drag. Confidence in the “TACO” trade, or Trump Always Chickens Out, has increased as the administration relents on tariffs.

Chadha now forecasts S&P 500 earnings per share at $267, up from $240, due to shrinking tariff impacts. Recent tariff escalations prompted 11 teams to lower S&P 500 targets, but Deutsche Bank is now the fourth to raise theirs as Trump eases tariff tensions. Analysts like Tom Lee and Mike Wilson predict a 10% S&P 500 rally by year-end.

Wilson believes the S&P 500 will reach 6,500 by 2025, as earnings estimates inflect higher. Despite ongoing trade policy uncertainty, the impact is diminishing, reducing recession risk and boosting confidence. Market volatility has decreased with Trump’s tariff dial-back, signaling a more positive outlook for corporates and consumers.



Read more at Yahoo Finance: Wall Street strategists see another 10% rally for the S&P 500 in 2025