S&P 500 Index Forecast for the End of 2023 by Credit Suisse Analysts

Reasons for Future Growth of the S&P 500 Index

Credit Suisse analysts predict that the S&P 500 index will continue to grow and reach a level of 4,700 points by the end of 2023. In this article, we will examine the main reasons that could contribute to this growth.

1. Growth of US bank stocks: Yesterday’s rise in US bank stocks following the release of strong quarterly reports provided support to the US stock market. Strengthening the financial sector could be a factor contributing to the growth of the S&P 500 index.

2. Rally of technology companies: One of the main reasons for the index growth is the ongoing rally of technology companies, particularly Microsoft. The strengthening positions of such major technology companies may lead to the growth of the S&P 500 index in the future.

3. Optimism in the US stock market: Thanks to the current optimism in the US stock market, the S&P 500 and Nasdaq indices closed at their annual highs. Support and positive sentiment in the market can be important factors contributing to the further growth of the S&P 500.

4. Reduction of recession risks: Credit Suisse experts refer to the reduction of risks of a possible recession in the US. If the economy maintains its stability, this can be a favorable factor for the growth of the S&P 500 index.

5. Financial performance of technology companies: Analysts also expect stronger financial results from major US technology companies in 2023 and 2024. Improvement in the financial indicators of giants like Microsoft can contribute to the growth of the S&P 500 index.

6. Monetary and credit policy: Credit Suisse’s base scenario assumes that monetary and credit policy in the US will gradually tighten, and the level of inflation will remain roughly the same as it is now. This can create a favorable investment environment and contribute to the growth of the S&P 500 index.

The table below presents the main reasons for the future growth of the S&P 500 index:

Reasons for the growth of the S&P 500 index
Growth of US bank stocks
Rally of technology companies amid AI boom
Optimism in the US stock market
Reduction of recession risks
Improvement in financial performance of technology companies
Monetary and credit policy and maintenance of current inflation level

Overall, Credit Suisse experts’ forecasts indicate that the S&P 500 index has the potential for further growth by the end of 2023. However, it should be remembered that the stock market is subject to fluctuations and forecasts may change depending on various factors.