Wall Street Most Bullish on European Stocks Since 2018 as Nvidia Outlook Lifts Global Chipmakers

Market strategists have issued their most optimistic September forecast for European equities in eight years, according to a Bloomberg survey of 16 strategists published September 18. The median target places the Stoxx Europe 600 Index at 670 points by year-end, implying a gain of roughly 5% from Wednesday's close, with strong corporate earnings cited as the primary driver offsetting pressure from high energy prices and rising bond yields.

The broader equity rally was given additional momentum by a bullish demand outlook from Nvidia, which lifted chipmakers across Asia and the United States. SK Hynix and Samsung Electronics were among the regional names that rallied, while the S&P 500 and Nasdaq 100 posted their best session since early August on September 17. US equity-index futures pointed to further gains heading into the September 18 open, even as European shares were set for a modestly weaker start.

Adding a note of caution to the risk-on mood, a stock-market warning tied to a signal seen only twice in 155 years was circulating alongside commentary from Warren Buffett. The Buffett Indicator, which compares total US stock market capitalization to GDP, stood at 232% as of mid-September, well above the roughly 200% level Buffett has called playing with fire. The S&P 500 has posted consecutive annual gains of approximately 26%, 25% and 18%, far above the index's 100-year average, and analysts noted the market's heavy concentration in a single industry, particularly the AI picks-and-shovels names, as a structural risk.

On the individual stock side, Abbott Laboratories attracted upgraded price targets from multiple Wall Street analysts citing accelerating growth in its Medical Devices segment, reinforcing its status as a Dividend King. Alaunos Therapeutics shares surged roughly 22% in premarket trading after the company filed amended bylaws with the SEC.