Due to recent market volatility, analysts are split on where the S&P 500 (SPX) is heading next. Piper Sandler analysts are remaining optimistic by keeping their bold year-end target of 6,600 for the index. That would require a gain of about 17% from current levels. They believe that recent market weakness has created a short-term buying opportunity and expect stocks to keep climbing in the weeks ahead.
On the other hand, Cantor Fitzgerald has a more cautious view. While it agrees that the recent rebound could last through the end of the month, it believes the broader market outlook remains weak. The firm expects first-quarter earnings results to disappoint and for 2025 earnings estimates to be revised downward. When combined with concerns about consumer confidence, higher prices, and weakening economic data, Cantor says that valuations could become a problem, which would limit how far stocks can climb.
These differing views highlight just how much uncertainty is currently present in the market. In fact, President Trump’s handling of trade policies since entering the White House has made it difficult for investors and businesses to properly assess how things are going to play out. This is because his flip-flopping on tariffs — imposing levies on goods one day only to remove them shortly after — has made him too unpredictable. It has also caused investors to worry about a slowdown in consumer spending and a surge in inflation that has led to an increase in stagflation fears.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 411 Buys, 87 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 10% rally in its share price over the past year, the average SPY price target of $689.89 per share implies 22.6% upside potential.
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