This year's report is tearing up earlier! Wall Street has been intensively raising its expectations for the US stock market this year, especially Goldman Sachs...

Believing that the Federal Reserve will cut interest rates in the middle of the year, Wall Street's bullish sentiment is soaring, and there is a rush to raise the outlook for US stocks.

According to Bloomberg, on Tuesday local time, UBS raised its forecast for the Pro UltrPro Shrt S&Pro 500 in 2024 by 6% to 5150, compared to 4850 points a month ago.

As of the close on Tuesday, the Pro UltrPro Shrt S&Pro 500 fell 0.37% to 4765.98 points. The Pro UltrPro Shrt S&Pro 500 has risen more than 24% for the whole of 2023, but has fallen 0.08% since the beginning of this year.

Previously, after the Federal Reserve's shift at the end of the year, Royal Bank of Canada and Goldman Sachs have also raised their outlook for US stocks. Among them, Goldman Sachs has been "tearing" its outlook report for 2 years:

• In November 2022, Goldman Sachs predicted that the Pro UltrPro Shrt S&Pro 500 would close at 4000 points in 2023. This value was "slapped in the face" by the year-end rebound, falling nearly 770 points below the actual closing price.
• In November 2023, Goldman Sachs predicted that the Pro UltrPro Shrt S&Pro 500 would close at 4700 points in 2024, but a month later, it raised the forecast to 5100 points.

A month ago, UBS mentioned the upside risks in its annual outlook report, citing strong profits, cooling inflation, prospects for loose monetary policy, and improving economic trends.

On Tuesday, UBS reiterated its bullish view on US stocks to its clients:

"Given the recent shift by the Federal Reserve, the increasing expectations of interest rate cuts, and the above-trend 2024 US stock correction returns, we believe that the fundamentals of the current US stock market are 'upward'." At the beginning of this year, the bullish sentiment has somewhat declined, and the US stock market has had a shaky start. The latest fund manager survey from Bank of America shows that the optimistic sentiment towards lower interest rates has prompted investors to increase their stock exposure to the highest level in over two years.

Steve Sosnick, Chief Strategist at Interactive Brokers, said:

"Strategists may be caught up in the enthusiasm like everyone else, and few are willing to lag behind, so target values are raised to keep up with the market."

"That being said, it's the first time I can recall target values being raised so quickly after the start of the year, especially when the Pro UltrPro Shrt S&Pro 500 hasn't reached new highs."