Citigroup cut its target for the S&P 500 for the end of the year by 4% to 4,000 points, and is expected to reach 3900 points by the end of 2023.
The bank explained that the gradual shift in the Fed's interest rate policy during the first half of 2023 provides support for valuation of U.S. stocks.
Credit Suisse also lowered its S&P 500 target by about 10% to 3,850 points at the end of this year, citing the impact of higher interest rates and slower economic growth on third-quarter earnings.
The Bank expects the index to rise about 13% from current levels, setting its target at 4,050 points.
