Wall Street analysts' 2022 outlook for S&P 500

(Corrects to say index closed at 4,682.80, not 3,372.85, in paragraph 1)

FILE PHOTO: A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid

(Reuters) -Research analysts of global banks have begun to roll out their predictions for the U.S. equity markets for 2022. The S&P 500 index has risen nearly 25% so far. The index closed at 4,682.80 on Monday.

Here is a summary of some analysts’ forecast for the index at the end of 2022:


@ END 2022

Morgan Stanley 4,400

Wells Fargo 5,100-5,300

Goldman Sachs 5,100

* Morgan Stanley: “While earnings for the overall index remain durable, there will be greater dispersion of winners and losers and growth rates will slow materially… 2022 will be more about stocks than sectors or styles, in our view.”

* Wells Fargo: “Persistent supply shortages and inflation pressures lead us to adjust the magnitudes of some 2022 targets, but we believe the global economy should still mark an above-average pace next year. More importantly, our tactical preferences for the next 6 to 18 months are nearly all unchanged.”

Goldman Sachs: “Decelerating economic growth, a tightening Fed, and rising real yields suggest investors should expect modestly below-average returns next year.”

“In contrast with our expectation during the past year, corporate tax rates will likely remain unchanged in 2022 and rise in 2023. Corporate earnings will grow and lift share prices. The equity bull market will continue.”

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