Grandbay Capital Hong Kong projects the US S&P 500 to rally more than expected by year end

ADMIRALTY, Hong Kong - Aug. 9, 2025 - PRLog -- US stocks may rally more than previously forecast as the Federal Reserve is projected to cut rates earlier than expected, according to Hong Kong based private equity firm Grandbay Capital.

The S&P 500 Index is forecast to rise 5% to 6,100 (up from a previous forecast of 5,600) in the next six months and by 10% to 6,300 (up from 6,500) in the next 12 months, Andrew Gillard, Director of Institutional Trading, writes in the team's report dated August 7 2025.

The forecast change reflects our economists' projections of earlier and deeper rate easing from the Fed and projections for lower bond yields, continued strength in the largest stocks, and investors' willingness to tolerate likely near-term weakness in company earnings.

"In addition to the improved outlook for interest rates, the strength of first quarter earnings results boosted our confidence that the largest stocks will sustain current investor expectations for their long-term growth for at least the next few quarters, helping support valuation for the aggregate S&P 500 index," Gillard writes.