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STRATEGISTS STILL MOSTLY UPBEAT ON S&P 500 DESPITE WAR, REUTERS POLL SHOWS

Strategists in a Reuters poll released Wednesday forecast the S&P 500 .SPX will end the year just slightly higher than where it is right now. Their median forecast for the benchmark index is 7,620. The S&P 500, which has been hitting record highs, was last at 7,510.23.

Many of the poll participants had a mostly positive outlook for the market despite the ongoing Middle East war. That includes Brian Levitt, chief global market strategist and head of strategy and insights at Invesco.

"The backdrop for risk assets remains sound," he says. "Despite the war and rise in oil/gas prices, credit spreads remain tight, the U.S. dollar has only gained modestly, and inflation expectations have stayed relatively contained."

"The expectation is for stocks to continue to outperform bonds and credit to continue to outperform Treasuries," he adds. However, he says "a slowdown in the global economy will likely result in continued outperformance of the mega-cap U.S. growth/quality companies." Levitt sees the S&P 500 ending the year in the range of 7,900 to 8,200.

Likewise, Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, says the firm currently sees the S&P 500 ending 2026 at 7,625, but that the target is "under review with upside bias."

"Investors are balancing strong AI-driven earnings momentum against renewed inflation concerns, rising Treasury yields and ongoing geopolitical tensions in the Middle East," he notes.

(Caroline Valetkevitch)

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