Robinhood’s Chief Investment Officer, Stephanie Guild, recently shared her updated predictions for the S&P 500 and the banking sector. She offered insights into her market outlook on CNBC’s Squawk Box.
S&P 500 Forecast
Guild revised her year-end target for the S&P 500, now predicting a close around 6,200, with a possible upside to 6,500. Her initial prediction was 6,500, but she adjusted her forecast due to concerns about tariffs impacting GDP and subsequently, corporate earnings. She acknowledged that the current market level is above her target and expressed caution, particularly regarding the potential impact of further tariffs. She believes a Federal Reserve rate cut could push the S&P 500 to her higher target of 6,500.
Banking Sector Predictions
Looking ahead to next week’s bank earnings reports, Guild expressed greater optimism about regional banks compared to their larger counterparts. She anticipates that regional banks will benefit more from deregulation and a potentially steeper yield curve resulting from interest rate cuts. While acknowledging the reasons for the Fed’s hesitation to cut rates, she still believes a cut is likely this year.