The Strategist

Societe Generale raises its year-end forecast for S&P 500

09/18/2023 - 11:16

The S&P 500 will be the "last one left standing" when the U.S. economy enters a recession in the middle of 2024, according to analysts.

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In light of sustained short-term optimism, Societe Generale analysts increased their forecast for the value of the S&P 500 at the end of the year from the previously anticipated 4,300 points to 4,750 points, MarketWatch reports.

According to experts, market expectations of a recession are "moving away or coming to naught" and investors are starting to place bets on more promising economic prospects.

Despite this, SocGen still predicts a downturn in the American economy in the middle of 2024, but the S&P 500 will continue to be "the last survivor" and endure until the very end. "We continue to see support for the S&P 500 index from investments in artificial intelligence and fiscal support for the manufacturing sector," the bank noted.