Big Bank Raises S&P 500 Target Amid Iran War Concerns

Financial market voices are split between warnings of war damage to Europe and optimism about US corporate profits. Some banks, such as Morgan Stanley, argue that the S&P 500 can climb further because large US firms will keep growing earnings despite the Iran war. Others highlight weaker business surveys in Germany, choppy European trading, and steady gold demand as signs that the conflict is already weighing on investment and trade.

• •Morgan Stanley expects an S&P 500 earnings boom and has raised its index target even as fighting continues in Iran.
• •European equity markets are opening weaker as investors react to stalled or uncertain Iran peace talks.
• •Gold prices are holding firm because traders want protection while US–Iran de-escalation efforts remain unclear.
• •German business leaders report that the Iran war has frozen parts of their recovery by hurting export orders and confidence.
• •Short bursts of stock market rallies occur whenever headlines suggest progress toward easing the Iran war.