Oppenheimer Asset Management increased its S&P 500 year-end prediction to 7,100 which represents the highest Wall Street estimate because of improving trade relations and strong corporate earnings performance.
The new projection shows a 11% increase from the index’s last close of 6,388.64 because of multiple trade agreements including the $750 billion U.S.-EU energy pact and the $550 billion U.S.-Japan agreement that stabilized market sentiment. The S&P 500 index has increased by more than 28% since its April trough caused by tariff-related uncertainty.
The market will maintain its positive direction according to Oppenheimer strategist John Stoltzfus because multiple significant tariff threats have been resolved. The firm returned to its $275 earnings prediction for the S&P after reducing it to $265 during April.
The market rally has been driven by cyclical sectors including tech and industrials and communications. The market expects stable interest rates from the Federal Reserve while investors await its policy decision as the forecast upgrade occurs.
The market has seen multiple bullish predictions emerge from Wall Street as Goldman Sachs and Bank of America have joined Oppenheimer in increasing their year-end targets. Stoltzfus maintains his preference for U.S. equities because inflation has moderated and policy support remains steady.
