The third largest American bank per assets is said to be expected that the S&P 500 will increase by no less than 16% of the current levels if the economy will reach certain conditions.
Citigroup analysts see the S&P 500 hit 7,000 in a bull scenario towards the end of the year, report Barron’s.
According to the analysts, a tree related to artificial intelligence (AI) and a “Goldilocks” setting for the US economy, driven by sustainable growth, low inflation and low unemployment, could act as catalysts for a rally of the stock market.
The Citigroup -analysts say,
“The AI trade seems to get a renewed momentum when we continue along Deepseek. Capex expenditure will continue to support future growth, while the activity of the stock-buyback strong cash flows and self-assured management reflects.”
The S&P 500 Index ended the trade on 6,038 points on Tuesday, about 2% below the highest point of 6,166 points reached in February.
Citigroup also upgraded the end of the Basicase for the S&P 500 index of 5,800 points, the Megabank had assigned to 6,300 points in mid-April.
In their bear scenario, the Citigroup analysts have set a downward target of 5,200 points for the S&P 500 index, according to the report. Such an outcome could arise as a result of a mild recession caused by the rates that the US government has set.
The Citigroup -analysts say,
“The concern about consumption trends, policy implications for rates/currency, with a negative economic reading risk, all still have to be navigated.”
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