Expect the stock market’s run to record highs to continue as the year goes on, according to Wells Fargo. Christopher Harvey, the bank’s head of equity strategy, raised his 2024 S & P 500 target to 5,535 from 4,625, implying a 6.4% upside from here. “We believe equities have some upside from here, but still anticipate a volatility spike in 1H24 while a 2H24 ‘melt-up’ appears increasingly likely, partly driven by political outcomes that support greater M & A and partly by an anticipated multi-year easing cycle that supports risk-taking,” Harvey said in a note Monday. Wells Fargo’ new forecast is one of the highest on the Street, surpassing the 5,500 target from John Stoltzfus at Oppenheimer. It is also 9% higher than the average projection of 5,064, according to the CNBC Pro Market Strategist Survey , which rounds up the targets from the top 14 Wall Street strategists. .SPX 1Y mountain S & P 500 The market’s 2024 took a breather as of late as investors reassessed the Federal Reserve’s path to cut interest rates. The Dow Jones Industrial Average fell 2.3% last week, posting its worst weekly performance since March 2023. The S & P 500 declined nearly 1% during the period, its biggest weekly loss since early January. The equity benchmark is still up more than 9% this year. Harvey said going forward, the trade that presents the best risk/reward is barbelling communications with the health care or utilities. “This combination allows investors to participate on the way up while providing attractive downside protection,” he said.
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