HSBC raises S&P 500 year-end target to 6,500

HSBC released a report stating that it has raised its year-end target for the S&P 500 again, from 6,400 to 6,500 points, following its previous increase in early August. This marks the second increase in less than a month, primarily driven by stronger-than-expected second-quarter corporate earnings. HSBC cited strong second-quarter earnings momentum, particularly in technology and financial stocks, as companies indicated that the impact of tariffs was modest. Furthermore, HSBC expects the Federal Reserve to cut interest rates in September, with a total of 0.75 percentage points cut by 2026, compared to the consensus estimate of a cumulative reduction of over 1.25 percentage points. HSBC also raised its 2019 earnings per share growth forecast for the S&P 500 from 9% to 12%, compared to the market average of 11%. In response to the higher EPS growth forecast, the S&P 500's year-end target remains at 7,000 points, with the lowest target at 5,700 points. (Golden Ten)