### Barclays Raises S&P 500 Year-End Target as Trump Tariff Uncertainty Eases

Barclays has increased its year-end target for the S&P 500 index, joining other major financial institutions in showing growing optimism for the market’s performance amidst easing concerns over President Donald Trump's tariff policies. The bank now forecasts the index to end 2025 at 6,050, up from a previous estimate of 5,900.

As of Tuesday, the S&P 500 closed at 5,970.37. Barclays' revised expectations align with recent adjustments made by Goldman Sachs, Deutsche Bank, and UBS Global Wealth Management, all of which have also enhanced their outlooks for the index.

In a client note, Barclays' analysts emphasized that diminished uncertainty surrounding Trump's tariffs has led to "incremental valuation upside." The strategists also anticipated a gradual shift towards more favorable tax and regulatory environments, fostering further market growth.

Looking ahead to 2026, Barclays projects the S&P 500 to reach 6,700, bolstered by expectations of robust corporate earnings per share growth. However, they noted that some challenges related to tariffs remain a potential risk.

Compounding the trade tensions, Trump's administration has set a deadline for countries to submit proposals for tariff negotiations by Wednesday. This follows an earlier announcement of reciprocal tariffs during an April event, with a delay set to expire in early July.

Although Trump’s administration has shown a willingness for dialogue, he has intensified the tariff measures by doubling duties on most imported steel and aluminum to 50%, effective from Wednesday. The President's push aims to reduce the dumping of these commodities in the U.S. and to enhance the competitiveness of American producers. Steel and aluminum derivatives will also be impacted by these higher tariffs.

Amid these developments, Barclays' analysts cautioned that elevated interest rates due to U.S. fiscal concerns and the potential for decreased consumer spending remain areas of concern for the market’s future stability.