Several Wall Street institutions have stated that the bullish case for the US stock market remains unchanged, with Goldman Sachs and Citigroup continuing to be optimistic about the future market trend.

BlockBeats News, June 8th. Driven by strong non-farm payroll data, the Federal Reserve's interest rate hike expectations for this year have risen, causing the Nasdaq to plummet 4.2% last Friday. The semiconductor sector led the decline, triggering global market volatility. However, Wall Street institutions such as Morgan Stanley and Citigroup believe that this correction is a healthy adjustment and does not signal the end of the bull market.

Morgan Stanley's Chief U.S. Equity Strategist, Mike Wilson, stated that the current sell-off is mainly due to the excessive gains in the semiconductor sector and overcrowded trades. The Philadelphia Semiconductor Index had surged nearly 96% year-to-date, significantly deviating from historical averages and showing clear signs of overbuying. He believes that the current correction will help cool market sentiment but will not undermine the fundamental strength of the U.S. economy and corporate earnings.

Wilson pointed out that the U.S. ISM Manufacturing Index has risen to 54, reaching a new high since 2022, and the non-farm payroll has added an average of 166,000 jobs over the past three months, indicating that the economy's resilience remains robust. His team maintains a year-end target of 8,000 points for the S&P 500 Index and advises investors to reduce crowded momentum trades and pivot to sectors such as non-essential consumption, regional banks, and transportation.

Meanwhile, Citigroup has raised its year-end 2026 S&P 500 Index target from 7,700 points to 8,100 points and increased the S&P 500's per-share earnings forecast for 2026 from $320 to $350, while providing an initial forecast of $400 per share earnings for 2027.

Citigroup believes that the AI investment frenzy and corporate earnings resilience will continue to support U.S. stock performance. However, it also warns that the pace of AI capital expenditure growth may slow after 2027, potentially putting pressure on valuations. Nevertheless, this risk has not yet become the core trading logic in the current market.