HSBC has significantly lowered its forecast for the level of the S&P 500 index by the end of this year, adjusting it to 5600 points down from its previous forecast of 6700 points.
The bank attributed this major adjustment to two key factors that cast a shadow over the performance of American companies and the economy in general: the tariffs imposed by the United States and the economic growth that is weaker than anticipated.
HSBC explained in its report that the continued imposition of tariffs would increase corporate costs and negatively impact their competitiveness, which in turn will put pressure on their profits.
Additionally, the slowdown in the pace of economic growth in the United States will reduce overall demand and affect corporate revenues, which will add further pressure on their final profits.
This sharp reduction in HSBC's forecast reflects a more cautious outlook on the future performance of the U.S. stock market in light of these economic and trade challenges.
It indicates that the bank expects companies listed on the S&P 500 index to face difficulties in achieving strong profit growth during the remainder of the year, which may limit the index's rise.
