• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Can this S&P 500 rally go much further? Deutsche Bank answers

by October 21, 2024
written by October 21, 2024

Investing.com — The recent surge in the S&P 500 has raised questions about how much further this rally can go.

In a note Monday, Deutsche Bank analysts cautioned that while the rally has been impressive, it faces several hurdles ahead.

The S&P 500 has logged six consecutive weekly gains for only the second time since the pandemic, marking “its strongest YTD performance since 1997,” said Deutsche Bank.

Additionally, “US IG credit spreads reached their tightest level since 2005 last Thursday,” reflecting broader market optimism.

However, the analysts note, “traditional valuation metrics are looking increasingly stretched by historical standards.”

Despite the bullish sentiment, Deutsche Bank points out that geopolitical risks and economic uncertainties are rising. The analysts explain, “With a soft economic landing increasingly priced in, it feels more difficult to get further upside growth surprises from here.”

Furthermore, the bank says fiscal policy challenges are mounting as debt levels are rapidly rising up the agenda again.

While markets remain strong, the analysts stress that future returns may be harder to achieve.

“The S&P 500 is on track for back-to-back annual gains above +20%, which is something we haven’t seen since 1997-98,” they wrote, noting that maintaining such momentum could be difficult.

In addition to valuation concerns, Deutsche Bank believes market conditions remain sensitive to external shocks. The note highlights that despite recent gains, “investors have been pretty nervous,” as evidenced by the market turmoil in August. A potential geopolitical shock or a negative growth surprise could quickly reverse recent gains.

Looking ahead, Deutsche Bank recommends caution: “Even as the global economy is in a fundamentally strong position right now, it’s worth remaining cautious given the strength of the recent market rally and the upcoming headwinds on the horizon.”

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Friedrich Vorwerk shares jump on upgraded guidance
next post
ECB’s Kazimir: increasingly confident in disinflation path

You may also like

BASF results down on impairments, restructuring

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Sign up and get the scoop before anyone else—fresh updates, and secret deals, all wrapped up just for you. We're talking juicy tips, fun surprises, and invites to events you actually want to go to. Don’t just watch from the sidelines—jump in and be part of the magic!








    By signing up, you're cool with getting emails from us. Don’t worry — your info stays safe, sound, and strictly confidential. No spam, no funny business. Just the good stuff.

    Recent Posts

    • Elon Musk’s SpaceX acquires xAI

      February 25, 2026
    • The architect of Amazon’s supply chain on running a startup with your spouse

      February 25, 2026
    • Trump administration alleges Nike discriminated against white workers

      February 25, 2026
    • Landmark trial accusing social media companies of addicting children to their platforms begins

      February 25, 2026

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (688)
    • Stock (6,426)

    Latest News

    • Elon Musk’s SpaceX acquires xAI
    • The architect of Amazon’s supply chain on running a startup with your spouse

    Popular News

    • Adobe forecasts fiscal 2025 revenue below estimates on slower subscription spending
    • U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 0.52%

    About The Significant deals

    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2026 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy