Market breadth and strength of US consumers could benefit S&P500

Market breadth and strength of US consumers could benefit S&P500

Analysts at Raiffeisen Bank International (RBI) are optimistic for the US stock market. They assume that the US economy will cool down, but that any recession should be mild at best. They also expect a foreseeable end to the US interest rate hike cycle, which could be positive for the market. Corporate profits are also expected to hold up and increase by around 11% in 2024. The RBI analysts currently recommend stocks from Amazon, Bank of America and Walt Disney, among others.

According to a capital markets strategist at J.P. Morgan Asset Management, the US stock market is well prepared for more turbulent times. He points to the breadth of the market and the strength of US consumers, which could make the S&P 500 look more robust compared to Europe. However, he warns against overly optimistic profit expectations for the next twelve months.

While giving an optimistic view on the stock markets, analysts at RBI have downgraded major stock markets to 'hold' from 'buy'. You can also imagine an interim phase of consolidation in the second half of the year. The recommendation for the ATX in the second half of 2023 is “Buy” because there is a high valuation discount compared to the major indices. According to RBI, two interesting ATX stocks are OMV and Erste Group.

The full source can be found at: www.wienerborse.at