After a rough first half, strategists from major Wall Street firms think stocks are regaining much of the ground they lost at the end of the year. The S&P 500 index is expected to end the year around 4,627, 20% higher than Friday’s levels, according to the year-end average target of 15 top Wall Street strategists. That means strategists think the market is likely to recoup most of its 2022 losses and end the year down only about 3%. The market has had a volatile year, with the S&P 500 index experiencing its worst first half since 1970. The equity benchmark has fallen into a bear market, down more than 20% from The record high was reached in the first week of January. Some of the positive outlook comes from hopes that the US can weather the recession. Some expect that to happen even as the Federal Reserve continues to aggressively raise interest rates to curb inflation. “While we still consider a soft landing in the economy as the single most likely scenario, the upside potential of the major indexes has been diminished,” said UBS strategists. due to slower growth and higher government bond yields,” UBS strategists said in a recent note. JPMorgan’s Marko Kolanovic is one of the most bullish strategists on Wall Street with a year-end target of 4,900 on the S&P 500. The widely-followed strategist believes investors have been overly pessimistic about these developments. Recession fears are overblown, noting that consumers remain strongly in favor of reopening the economy. “We believe the market rate re-pricing has gone too far and the Fed will be pleasantly surprised by what is currently priced into the curve,” JPMorgan’s Kolanovic said in a note. uncle. Kolanovic said he favors segments that have been sold off sharply and are trading near record-low relative valuations, including companies focused on innovation, China’s ADRs, small caps and biotech. learn. Amid the downside, Morgan Stanley’s Mike Wilson, who has a 2022 target of 3,900, recently sounded the alarm about a downward earnings correction. Wilson said the S&P 500 could bottom out between 3,400 and 3,500 if the US avoids a recession. However, if a recession comes, the equity benchmark could drop to 3,000, or more than 20% off Friday. – Michael Bloom of CNBC contributed reporting.