NEW YORK: The S&P 500 is poised to climb 9per cent between now and the end of 2021 as the anticipated widespread release of a COVID-19 vaccine drives an economic and corporate earnings recovery from the pandemic, according to a Reuters poll of strategists.
Recent evidence of high efficacy rates in experimental COVID-19 vaccines has driven an advance in equities this month, and strategists in the poll cited progress in the vaccine as the main factor behind their forecasts. Recent hopes related to the vaccine have breathed new life into cyclical stocks, such as industrials and energy shares, which investors dumped earlier during the pandemic.
Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities, is neutral on cyclicals heading into 2021. In his outlook for next year, he wrote that,"the fundamental case for TECH+ remains compelling" based on expected growth in sales and margins, among other factors. He forecasts the S&P 500 will end next year at 4,050.
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