Reuters reporting, citing a Société Générale note.

SocGen raised its S&P 500 price target for the end of 2023 to 4,750 from 4,300.

  • in coming months, calls for a recession will be "deleted/delayed"
  • "... we stay bullish near term."
  • support for the S&P 500 coming from AI-driven investments and its also attractive against many other international equity markets, as "we have stagflation in Europe and disinflationary downturn in China."

"We believe the S&P 500 will be the ‘last man standing’, in terms of defending its returns"

  • but, SSG still expect a U.S. recession as the "core scenario," even if delayed

Further out:

  • target of 3,800 for Q2 of 2024
    • expecting a "shock" to the index "likely driven by a contraction in U.S. consumer spending."
  • by Q4 2024 back to 4,750

Among the negative risks cited by the firm is if the 10-year U.S. Treasury yield hits 5% or higher

  • would push the S&P 500 back to 4,000
spx500 forecasts from Societe Generale