Major Wall Street analyst revamps S&P 500 target amid tumble

Monday, August 4, 2025

After a wild selloff on Friday, stocks are sharply higher on Monday.  Mostly, this is something of a dead-cat bounce, meaning stocks tumble and bounce up. And then the question becomes: Was Friday’s tumble a one-off event or something else? That will become clearer as the week moves on, or maybe the month. At 1:40 pm EDT the Dow 30 were up 1.24%, the S&P 500 gained 1.34% and the Nasdaq Composite tacked on 1.82%.

The wow story, if we can be forgiven for using the phrase, was the decision of Tesla’s board to award CEO Elon Musk a stock grant valued at some $30 billion to keep him at the company for the next two years at least.  Musk has wanted a bigger stake in the company as he reorients Tesla from a car-and-other-stuff company into one interested in futuristic pursuits including artificial intelligence and driverless vehicles. In a letter to shareholders, the Tesla board wrote that the company “requires a leader who combines strategic foresight, adaptability, and relentless execution to outperform competition and inspire the team." Tesla shares were up 2.1% to $309.10. But they are still down 23.5% in 2025.

Monday Reading:

• TSA urgently warns parents of little-known travel rule for kids
• Ford CEO sees huge industry shift after latest tariff developments
• Analyst revamps Palantir stock forecast before earnings
• Veteran trader posts a major warning for the stock market
• Papa John’s closing dozens of US stores as sales slide
• Dave Ramsey has blunt words for Americans on Medicare, Medicaid

The unspoken story today is not the rally. It’s that traders believe the slowing economy will force the Federal Reserve to cut its key Federal Funds Rate from 4.25% to 4.5% to 4% to 4.25% by no later than September. CME's Fed Watch Tool suggests an 87% chance of a September rate cut.
    
Berkshire Hathaway is trading 3% lower following a $3.8 billion impairment on its holdings of Kraft Heinz. The company's earnings were 31% below Wall Street expectations, on revenue in line with estimates. After the close, we'll hear from Palantir PLTR. Analysts expect $0.14 EPS on revenue of $939 million. The shares at last check were 4% highere at $160.45.

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Major Wall Street analyst revamps S&P 500 target amid tumble

The analyst offers insight into what could happen to the benchmark index next.

[READ ARTICLE]

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