Wall Street calls for stock market rally to continue as corporate profits remain resilient despite tariffs

The second -quarter profit season is expected to be increasingly confident of Wall Street that the S&P 500 (^GSPC) has a space to continue in 2025.

In a memorandum of customers during the weekend entitled “Better Reconseping Ensemble”, the Citi US Equity Strategy team led by Scott Chroonert its goal at the end of the year to 6,600 of previous expectations of 6300. The Chronert team started this year with 6500 before reviewing it throughout the spring, as president Trump’s tariff shook the stock market.

The new Chronert goal reflects about 4 % of the current levels, and will be almost 33 % of the standard index of its lowest level in April.

“Although we are increasingly confident in the basic preparation of the index, we are still cautious that many prices have already been priced.” “Thus, as we were discussing, volatility should be expected, and bought.”

The Chronert call does not depend on the S&P 500 reviews that extend to the historically extended levels. Instead, Chroonert sees profit growth more accelerating than thinking in the beginning. Chronert now sees S&P 500 profitability per share at $ 272 in 2025 and $ 308 in 2026, up from $ 261 and $ 295 previously.

The upcoming profits of the profits until 2026 should push to S&P 500 to 6900 by mid -2026, for each Chronert.

The invitation comes from Citi, where two important directions appeared during the second quarter profit season. It is not only the estimates of the S&P 500 that easily overcome Wall Street estimates for the current quarter, as they do not decrease the last two quarters of the year as they usually do.

With 90 % of the S&P 500 after being reported, the profits in the second quarter can grow to 11.8 %, up from 5 % expected on June 27, according to FactSet data. After that, the estimates of the entire 2025 estimates increased to expected growth on an annual basis of 10.3 %, up from 9.1 % expected on June 27.

“The main fast food here is that, after steady declining reviews of unanimity over the past year, we now see a positive reflection.” “We expect the aspects of tax reform [One Big Beautiful Bill Act] It can still be a sudden factor in the upward trend for [second half of 2025] consensus.”

Chroonert is not alone in becoming more optimistic about stock expectations, as companies have revealed that the customs tariff does not harm profit expectations as they are afraid. Two weeks ago, John Stolzvos, the chief strategy of the market in Obenheimer, has strengthened his goal at the end of the year to 7100 of 5950 as “progress in commercial negotiations removes uncertainty that affected our view of the market.”