Deutsche Bank raises S&P 500 forecast: ‘We will get further relents’ by Trump on tariffs

Deutsche Bank has revised its year-end forecast for the S&P 500, raising the target from 6,150 to 6,550. This adjustment reflects increased optimism due to reduced concerns over tariff-related earnings impacts and sustained economic strength. Strategists, led by Binky Chadha, now estimate the negative impact from tariffs to be about one-third of previous estimates.

The S&P 500 experienced its strongest monthly performance since November 2023 in May, bolstered by President Donald Trump’s more moderate approach to tariffs, solid corporate earnings, and favorable inflation data. Deutsche Bank also increased its earnings per share forecast for the index from $240 to $267.

While this outlook is positive, Deutsche Bank cautions that continued volatility is expected, with potential pullbacks due to fluctuating trade policy dynamics.