Updates with S&P 500 targets from Deutsche Bank, Barclays, RBC Capital Markets; GDP and U.S. inflation forecasts from Deutsche Bank; Morgan Stanley's GDP forecasts
June 6 (Reuters) - Major brokerages such as Barclays and Deutsche Bank have raised their S&P 500 .SPX index price targets, pointing to fading trade uncertainties and less tariff-driven pressure on earnings.
RBC Capital Markets, Deutsche Bank and Barclays lifted their targets this week, building on similar upgrades from Goldman Sachs and UBS Global Wealth Management last month.
Some Wall Street brokers lowered their U.S. recession forecasts after a temporary tariff truce between the U.S. and China eased global trade tensions and sparked a rally in riskier assets.
Goldman Sachs, the first major brokerage to make this adjustment, reduced its recession probability from 45% to 35%. Barclays dismissed recession risks altogether, while J.P. Morgan now estimates the likelihood of a recession to be 40%.
Following are the forecasts from some top banks on economic growth, inflation and the performance of major asset classes in 2025.
Forecasts for stocks, currencies and bonds:
Brokerage | S&P 500 target | U.S. 10-year yield target | EUR/USD | USD/JPY | USD/CNY |
UBS Global Research | 5300 | 3.80% | 1.23 | 130 | 7.60 |
Goldman Sachs | 6100 | 4.35% | 1.20 (next 12 months) | 135 (next 12 months) | 7 (next 12 months) |
UBS Global Wealth Management | 6000 | 4.00% | 1.16 (Dec-25) | 140 (Dec-25) | 7.10(Dec-25) |
Wells Fargo Investment Institute | 5900-6100 | 4.00%-4.50% | 1.08-1.12 | 144-148 | |
6750 | 4.50% (Q4'25) | 1.09 | 146.3 | 7.28 | |
Deutsche Bank | 6550 | 4.65% (Q4'25) | 1.10 | 145 | 7.35 |
Nomura | 4.15% | 1.03 | 135 | 6.93 | |
6500 | 4% (Q4'25) | 1.08 (Q4'25) | 141 (Q4'25) | 7.60 (Q4'25) | |
J.P.Morgan | 6500 | 4.10% (Q3'25) | 1.14 (Q4'25) | 140 (Q4'25) | 7.60 |
BofA Global Research | 5600 | 4.50% | 1.17 | 155 | 7.30 |
Wells Fargo | 3.96% | 0.98 (Q4'25) | 154 (Q4'25) | 7.60 (Q4'25) | |
BMO Capital Markets | 6100 | ||||
Jefferies | 5300 | 4.43% | |||
Barclays | 6050 | 4.00% (Q4'25) | 1.06 (Q4'25) | 144 (Q4'25) | 7.50 (Q4'25) |
Piper Sandler | 6600 | ||||
Berenberg | 4.90% | 1.14 | 140 | 7.30 | |
4.65% (Q4'25) | 1.00 (Q4'25) | 156 (Q4'25) | |||
Canaccord Genuity | 6325 | ||||
Citigroup | 5800 | 4.20% (Q4'25) | 1.05 | 139 | |
ING | 1.02 | 160 | 7.35 | ||
HSBC | 5,600 | ||||
Evercore ISI | 6800 | ||||
Peel Hunt | 4.20% | 1.11 (Q4'25) | |||
RBC Capital Markets | 5730 | 4% | |||
Oppenheimer Asset Management | 5950 |
U.S. Inflation:
U.S. inflation (annual Y/Y for 2025) | ||
Brokerage | Headline CPI | Core PCE |
Goldman Sachs | 3.5% | 3.0% |
J.P.Morgan | 3.7% | 4.4% |
3.0% | 2.5% (Q4/Q4) | |
Barclays | 3.1% | 2.5% |
Wells Fargo | 2.8% | 2.8% |
2.3% | 2.5% | |
Deutsche Bank | 3.2% | 3.6% (Q4/Q4) |
Wells Fargo Investment Institute | 3.5% | |
UBS Global Wealth Management | 3.0% | |
Citigroup | 2.7% | 2.6% |
BofA Global Research | 3.0% | 2.3% (Q4/Q4) |
Berenberg | 2.9% | 2.6% |
2.3% | ||
Nomura | 3.0% | 3.3% |
ING | 2.4% | |
Jefferies | 2.3% | 2.5% |
UBS Global Research | 3.2% | |
Peel Hunt | 3.2% | |
Real GDP Growth:
Real GDP growth forecasts for 2025 | ||||||
Brokerage | GLOBAL | U.S. | CHINA | EURO AREA | UK | INDIA |
UBS Global Research | 2.5% | 1.4% | 3.4% | 0.7% | 0.8% | 6% |
Goldman Sachs | 2.4% | 1.5% | 4.6% | 0.9% | 1.2% | 6.1% |
Barclays | 2.9% | 0.9% | 4.0% | 0.6% | 1% | 7.0% |
2.9% | 1.5% | 4.5% | 1.0% | 0.8% | 6.4% | |
J.P.Morgan | 2.4% | 1.0% | 4.3% | 0.8% | 0.7% | 6.0% |
UBS Global Wealth Management | 2.7% | 1.6% | 4.0% | 0.7% | 0.8% | 6.0% |
Wells Fargo | 2.7% | 1.3% | 4.5% | 0.9% | 0.8% | 5.9% |
Societe Generale | 3.3% | 2.2% | 4.7% | 1.0% | 1.6% | |
Citigroup | 2.3% | 1.4% | 4.7% | 0.8% | 2.0% | 6.7% |
Nomura | 2.8% | 1.4% | 4.0% | 0.8% | 0.8% | 5.9% |
BofA Global Research | 2.8% | 1.5% | 4.0% | 0.8% | 1.1% | 6.4% |
Deutsche Bank | 2.9% | 1.6% | 4.7% | 0.8% | 1.2% | 6.5% |
Wells Fargo Investment Institute | 2.1% | 1.0% | 0.9% | |||
Berenberg | 2.3% | 1.6% | 4.2% | 1.0% | 1.1% | 6.5% |
2.1% | 4.5% | 1.0% | 1.1% | 6.2% (March 2026) | ||
Peel Hunt | 1.5% | 4.5% | 0.9% | 1.1% | 6.3% | |
ING | 2.0% | 4.7% | 0.7% | 1.4% | ||
Jefferies | 2.4% (Q4/Q4) | |||||
* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group
* Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank
Brokerages' 2025 forecast for S&P 500 index target https://reut.rs/4fY5JjZ
(Compiled by the Broker Research team in Bengaluru; Edited by Shounak Dasgupta and Devika Syamnath)
((Siddarth.s@thomsonreuters.com))
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