Citigroup's Bullish S&P 500 Forecast Soars on Tax Relief Optimism

Citigroup has raised its year-end projection for the S&P 500 index to 6,600, banking on the economic boost from President Trump's tax and spending reforms to enhance corporate earnings.

This marks the second increase by Citigroup in two months, following similar moves from key players such as HSBC, Goldman Sachs, and BofA Global Research. The new target represents a 3.2% increase from the index's recent close of 6,389.45, up from June's target of 6,300.

Citi analysts noted that while the impact of U.S. tariffs has been largely accounted for, the tax benefits from the spending bill are expected to improve earnings forecasts. Following Trump's 'Liberation Day' tariffs, the index has soared 32.2%, with Big Tech's impressive earnings playing a crucial role in the rally. In a more optimistic scenario, Citi predicts the index could reach 7,200 points.

(With inputs from agencies.)