Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Citi Reiterates its 4200 S&P 500 Price Target, Expects a Risk-on Rally in Q4

Stock Markets Sep 26, 2022 07:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
US500
-0.03%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
+0.23%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic 

Despite several top strategists calling for the continuation of U.S. stocks selloff into the end of 2022, Citi U.S. Equity Strategist Scott Chronert reaffirmed the bank’s 4200 year-end target.

Chronert urged clients to watch 3650 level this week in the S&P 500 as the soaring U.S. dollar, aggressive Fed tightening, and negative earnings revision, continue to weigh on the sentiment.

"Whether [3650] it holds or not, our base view is that earnings resilience will continue during the Q3 reporting period. We don’t see a specific macro catalyst in the immediate future," Chronert wrote in a client note.

Chronert's against-consensus play sees the S&P 500 enjoying a risk-on rally "at some point during Q4," which should take the index closer to Citi's price target.

"Admittedly, this will require some modest change in perception re: the Fed’s current hawkish commentary. 1H '23 recession remains our base case. There, our year earnings expectations remain too optimistic and will need to be reined in. But, this should be well anticipated at this point," the strategist concluded.

Chronert’s colleague at Morgan Stanley, Michael Wilson, called today for a drop to 3000-3400 in the S&P 500 later this fall.

Citi Reiterates its 4200 S&P 500 Price Target, Expects a Risk-on Rally in Q4
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email