Oppenheimer raises S&P 500 price target to $5,900, citing strong earnings and economic data.

From Investing.com: 2024-07-08 05:10:25

Oppenheimer raises year-end target price for S&P 500 to $5,900 and ups earnings projection. This marks the firm’s third target adjustment for 2024, originally set at 5,200 last December. The bullish outlook is supported by strong earnings results and economic data, driven by the Fed’s cautious monetary policy.

After S&P 500 exceeded initial target, strategists hinted at possible further revision. Recent record high of 5567.19 led to new target of 5,900, implying potential gain of nearly 6%. Forecast considers economic uncertainties, earnings results, and domestic and geopolitical risks.

Initially projected 13% upside for S&P 500 by year-end, based on expectation of Fed maintaining cautious approach. Anticipated Fed to continue pause on rate hikes, with lower likelihood of recession due to persistent economic resilience and inflation target challenges.

Oppenheimer expects Fed to cut rates once or twice late in fourth quarter as a signal of moving closer to end of rate hike cycle. Surprised if cuts occur as early as September, as Fed likely aims to keep policy independent of politics. Raised 2024 earnings projection for S&P 500 to $255 from $250.



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