US stock market predictions: Here are what to expect for S&P 500, Dow Jones, Nasdaq
US stock market and Wall Street investors look for hints about further Federal Reserve interest rate cuts that could restore some calm to S&P 500, Dow Jones, and Nasdaq Composite, as per a report.
A weeks-long slide in stocks accelerated in recent days with the benchmark S&P 500 on Thursday confirming it was in a correction, ending down over 10 per cent from its February 19 record high. While stocks ended the week on a positive note, with the S&P 500 rebounding sharply on Friday, the decline had wiped off more than $4 trillion in market value, with some of Wall Street's highest fliers such as Nvidia and Tesla getting pummeled, Reuters reported.
Some prominent strategists have become more downbeat on the outlook for the economy and for U.S. stocks. Goldman Sachs dropped its 2025 year-end target for the S&P 500 to 6,200 from 6,500, while Yardeni Research lowered its «best-case» target for the index to 6,400 from 7,000. The S&P 500 ended on Friday at 5,638.94, as per the report on Reuters.
Volatility has been rising with the Cboe Volatility index this week hitting its highest level since August before receding somewhat.
Tariff news is still likely to be at the forefront for markets in the coming week, with analysts saying the levies could bite into corporate profits and drive up consumer prices.
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The Fed's latest monetary policy meeting comes as Wall Street is increasingly worried about an economic slowdown, with concerns exacerbated by Trump ramping up his tariff war.
The U.S. central bank is widely expected to hold interest rates steady on Wednesday, but investors are anticipating cuts later in the year and will be looking for signs the Fed may be preparing to move.
Prospects for rate cuts won a boost