S&P 500 Index: Eyes 9% rally to 3,900 by end-2021 – Reuters poll

According to the latest Reuters poll of 40 strategists, the S&P 500 index is set to rise 9% by the end of 2021, as the coronavirus vaccines rollout is likely to boost a post-pandemic economic and corporate earnings recovery.

Key findings

“The benchmark S&P 500 will finish 2021 at 3,900, a 9% gain from its close Monday of 3,577.59. The index is expected to end 2020 at 3,600, close to its current level.”

“Wall Street analysts expect S&P 500 earnings to jump 23% in 2021 after falling more than 15% in 2020, according to tn I/B/E/S data from Refinitiv.”

“Asked when earnings will return to pre-COVID-19 levels, most respondents said it would happen within a year.”

“The Dow Jones industrial average, which was near 30,000 through Monday, will finish next year at 32,500, up around 10% from Monday's close.”

“Some strategists predict the gains in cyclical will extend far into 2021, but others say the rotation may not be long-lived.”

“Strategists in the poll said expectations the Fed will remain accommodative help to bolster the case for equities next year.”

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