Published by Global Banking & Finance Review®
Posted on June 3, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleDeutsche Bank raises S&P 500 target to 6,550, citing reduced tariff impact. Other Wall Street firms also upgrade forecasts amid market optimism.
(Reuters) - Deutsche Bank has raised its year-end target for the S&P 500 to 6,550 from 6,150, citing lower tariff-related earnings drag and a resilient economy, in a move that comes amid a broader wave of target upgrades by major Wall Street brokerages.
This follows similar moves by Goldman Sachs and UBS Global Wealth Management, which raised their forecasts in May, with RBC Capital Markets joining the trend on Monday.
"We now see the tariff drag at only about one-third of what we previously penciled in," Deutsche Bank strategists led by Binky Chadha wrote in a note on Monday.
The new target is 10.35% above the S&P 500 index's last close of 5,935.94.
The S&P 500 posted its strongest monthly gain since November 2023 in May, boosted by U.S. President Donald Trump's softer stance on tariffs, strong corporate earnings, and tame inflation data that helped markets recover from April's decline.
Still, the European brokerage warned that the rally could be volatile, with potential pullbacks driven by renewed trade tensions.
"We expect the rally to be punctuated by sharp pullbacks on repeated cycles of escalation and de-escalation on trade policy", the brokerage said.
Deutsche also increased the estimate for the index's earnings per share to $267 from $240.
(Reporting by Rashika Singh in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips)
Deutsche Bank has raised its year-end target for the S&P 500 to 6,550 from 6,150.
The revision was based on a lower tariff-related earnings drag and a resilient economy.
The new target is 10.35% above the S&P 500 index's last close of 5,935.94.
Deutsche Bank increased its estimate for the index's earnings per share to $267 from $240.
Deutsche Bank warned that the rally could be volatile, with potential pullbacks driven by renewed trade tensions.
Explore more articles in the Finance category
