US stock markets opened on a cautious note, with investors seeking clarity amid conflicting reports on trade negotiations between Washington and Beijing. The subdued start comes after a strong rally the previous day.
The S&P 500 inched up 0.1%, while the Dow Jones slipped 0.2%. The tech-heavy Nasdaq 100 managed a modest gain of 0.4%.
Strategists at Deutsche Bank, led by Bankim Chadha, have sharply downgraded their year-end target for the S&P 500, slashing it by 12% due to escalating uncertainty surrounding the US-China trade war. The bank now expects the index to end the year at 6,150, down from its previous forecast of 7,000—just enough to recoup losses since the February peak.
Other major firms, including Goldman Sachs and Citigroup, have adopted similarly bearish outlooks, projecting that the index could fall below 6,000 by year-end.
Deutsche Bank also forecasts a 5% decline in S&P 500 earnings this year, diverging sharply from the market consensus, which still expects 8% growth.
“Despite several attempts to ease tensions, there has yet to be a meaningful shift in trade policy,” said Chadha. “At the same time, broader macroeconomic concerns continue to grow. The uncertainty surrounding final tariff levels suggests significant downside risk, with US firms likely to shoulder a disproportionate share of the cost.”
