12:19 PM EDT, 07/28/2025 (MT Newswires) -- Oppenheimer on Monday raised its year-end target for the S&P 500 index as recent trade deals have helped reduce policy uncertainty that fueled economic concerns earlier this year.

The benchmark equity index is now seen finishing the year at 7,100, versus 5,950 the brokerage previously expected.

The S&P 500, which posted record closing highs in each of last week's trading days, was up 0.1% to 6,395.2 intraday Monday. The index has risen 8.6% this year.

The US and the European Union announced a trade deal on Sunday, under which the EU will pay 15% tariffs on most of its exports, including automobiles, semiconductors and pharmaceuticals. Last week, the US announced trade deals with Japan, the Philippines and Indonesia.

"Although much uncertainty and worry prevailed for some time both with trade policy and geopolitical events, and given the multitude of potential outcomes, we'd note that cooler heads prevailed -- leading to positive outcomes at least for now," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a note.

After setting a 7,100 target in December, the brokerage slashed it to 5,950 in the wake of Trump's reciprocal tariffs early in April, which he subsequently suspended for 90 days.

Trump said Monday that he will likely impose a tariff rate between 15% and 20% on countries that haven't struck trade deals, CNBC reported. The US administration has set an Aug. 1 deadline for countries to negotiate deals with Washington or potentially face higher tariffs.

Oppenheimer reinstated its 2025 earnings projection of $275 for S&P 500 companies.

"With one third of the firms in the S&P 500 index having reported, the quarter appears to be off to a good start," Stoltzfus said.

The latest quarterly results showed earnings growth of 8.3% from a year earlier, with revenue up 4.8%, according to the Oppenheimer note. Ahead of the start of the current reporting season, Forbes put expected earnings growth at 4.8%.

Some 161 S&P 500 companies are scheduled to report this week, followed by another 126 next week, Stoltzfus said.