September 12 - Major brokerages have turned buoyant on the benchmark S&P 500 (.SPX) , opens new tab index, betting on resilient corporate earnings and stable U.S. economy, despite companies flagging hits due to tariffs.

As the gap widens between bullish targets from brokerages and cautious signals from companies, the market's trajectory may hinge on how effective tariff mitigation strategies would prove to be.

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In the past week, Barclays and Deutsche Bank became the latest brokerages to raise their year-end S&P 500 targets.

Market participants expect the U.S. Federal Reserve to deliver a rate cut at next week's policy meeting that could further aid equities following soft jobs and inflation reports.

The U.S. economy is expected to grow between 1% and 2% this year, according to estimates from leading brokerages.

Following are the forecasts from some top banks on economic growth, and the performance of major asset classes in 2025.

U.S. recession forecasts:

Forecasts for stocks, currencies and bonds:

Real GDP Growth:

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

* Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank

https://www.reuters.com/markets/us/brokerages-expect-global-growth-slow-late-2025-tariffs-geopolitical-tensions-2025-09-12/