BofA Global Research and Oppenheimer Asset Management have recently lowered their year-end goals for the S&P 500 index below 6,000 due to concerns over escalating global trade tensions. Oppenheimer revised its target to 5,950 from 7,100, while BofA decreased it to 5,600 from 6,666, one of the most conservative estimates on Wall Street.

The S&P 500 index experienced a substantial decline, falling over 20% from its peak, indicating a potential bear market. This downturn has been influenced by the ongoing trade disputes, causing investors to seek refuge in safer assets amidst fears that the trade tariffs imposed by President Trump could lead to an economic downturn.

According to John Stoltzfus, Oppenheimer's chief investment strategist, the current stock market levels seem oversold, with high levels of uncertainty that investors are finding difficult to navigate. The index closed at 5,074.08 at the end of the week, with Stoltzfus reducing the earnings-per-share estimate to $265, a 3.6% reduction.

Despite these adjustments, Oppenheimer maintains an "overweight" position on U.S. equities, emphasizing that their lowered projections are not a departure from their optimistic outlook but a realistic reassessment considering the prevailing uncertainties and the expected pace of recovery in stock prices.

The above information was reported by Rashika Singh in Bengaluru and edited by Devika Syamnath.