2022 Stock Market Outlook for S&P 500, Wall Street Investing Advice – Business Insider

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  • Investors are still split on the trajectory of the stock market in 2022.
  • While some believe the market will continue to rally, others say a pullback is inevitable.
  • Insider rounded up the forecasts for 2022 from strategists at Wall Street’s top firms.

After a historically volatile two years, the S&P 500 should be lauded for one of the greatest comebacks in stock market history.

Last March, amid fears materializing around a new strain of coronavirus, the S&P 500 plunged below 2,500. But since then it’s been on an upward tear, with the index gaining almost 27% year to date and shattering numerous records along the way.

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Still, the year hasn’t been without its fair share of tension. Staggering inflation, global supply-chain bottlenecks, emerging COVID-19 variants, and fears of a market crash were all factors that overwhelmed investors in 2021 and will likely continue plaguing equities in the near future.

Despite these impediments, investors are still split on the trajectory of the stock market heading into next year. Many are optimistic, believing that steadfast consumer demand, robust household savings, and “a positive economic backdrop” will further elevate equity gains. Others are more bearish, pointing to fears of “dangerously overvalued” stock prices and predicting that Fed tapering will inevitably lead to a market downturn.

Below is a roundup of S&P 500 forecasts for 2022 from 10 top Wall Street firms. These forecasts are listed in order from most bullish to most bearish and include commentary from each bank, as well as investing recommendations.

Out of the 10 investment banks, eight predicted stock market gains: Bank of Montreal, Wells Fargo, Credit Suisse, Goldman Sachs, JPMorgan, Royal Bank of Canada, Jefferies, and UBS. Only two predicted losses: Bank of America and Morgan Stanley. The 2022 year-end S&P 500 forecasts ranged from 4,400 (a 5% loss from Tuesday’s close of 4,649) to 5,300 (a 14% gain). 

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