Oppenheimer strategist predicts S&P 500 will reach new record high by year end
Oppenheimer strategist predicts S&P 500 will reach new record high by year end
Oppenheimer Asset predicts S&P 500 will reach new high by year-end
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In a surge of optimism for the stock market, Oppenheimer Asset Management is projecting that the S&P 500 will surpass its previous record high by the end of the year. This bullish sentiment echoes the growing trend among Wall Street firms, who have been delighted by the market’s impressive rally throughout the current year.
Chief Investment Strategist, John Stoltzfus, has stated that Oppenheimer has raised its year-end price target for the S&P 500 to an impressive 4,900, up from the previous projection of 4,400 set back in December. This new target represents a substantial 7% increase from Monday’s closing price for the benchmark index, which has already gained an impressive 19% since the start of the year.
To put this into perspective, the S&P 500’s previous record closing high stands at 4,796.56, achieved on January 3, 2022. The index’s intraday record is an even more impressive 4,818.62, recorded on January 4, 2022. This shows that Oppenheimer’s projection is predicting that the S&P 500 will not only break its previous record, but continue to climb even higher.
Stoltzfus attributes this positive outlook to multiple factors. Firstly, he predicts that U.S. inflation will continue to trend lower, which will alleviate concerns for investors. Additionally, he mentions that the Federal Reserve’s rate-hiking cycle appears to be nearing its end, which will provide stability to the market. Finally, Stoltzfus notes that the “capitulation” by stock market bears indicates that money currently held on the sidelines may flow into stocks in the coming months.
In his note, Stoltzfus stated, “Our appraisal of the market landscape… suggests that opportunity outweighs risk as current monetary policy generates a transition from a ‘free money’ environment to an environment with a traditional cost of borrowing.” This shows that Oppenheimer is confident in the future growth potential of the stock market and sees the current conditions as favorable for investors.
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Oppenheimer’s optimistic outlook on the stock market aligns with recent bullish sentiment among other major financial institutions. Citigroup, for example, has recently increased its S&P 500 price target by 15%, citing a higher probability of an economic soft landing. Meanwhile, Morgan Stanley strategist Michael Wilson admitted that his firm’s more bearish views on the broader US equity market have been proven wrong this year. Despite this, Morgan Stanley’s base-case June 2024 price target of 4,200 still remains about 8.5% below the current levels of the S&P 500.
Overall, the prevailing sentiment on Wall Street seems to be exceptionally positive. With increasing price targets and a shift in bearish views, market participants are eager to capitalize on the opportunities presented by the stock market’s upward momentum. As the economic landscape evolves, and the cost of borrowing returns to normalcy, investors are cautiously optimistic that the stock market will continue to reach new heights in the coming months.
