With the S&P 500 index breaking through 5600 points for the first time on Wednesday and breaking a new historical high for the 37th time this year, Wall Street is increasingly convinced that the bull market in the US stock market will continue.
This week, another Wall Street investment bank raised its year-end target price for the S&P 500 index, indicating that they believe 5600 points is far from the end of this round of gains in the US stock market.
Wall Street has been completely occupied by bulls
Wall Street investment bank Oppenheimer has raised its year-end forecast for the S&P 500 index from 5500 points to 5900 points, with nearly 5% more room for improvement compared to Wednesday's closing price. This transformation has made the company the second most optimistic on Wall Street, second only to Evercore, which announced a target price of 6000 points last month.
Currently, Wall Street has been completely occupied by bulls. Apart from Oppenheimer and Evercore, currently among the largest banks on Wall Street, UBS and Goldman Sachs have the highest expectations for the S&P 500 index, with an expected year-end of 5600 points.
Meanwhile, pessimistic analysts are now almost nowhere to be found on Wall Street.
Last week, one of the remaining bearish bears on Wall Street, former Chief Market Strategist at JPMorgan Chase, Marko Kolanovic, left the bank. Morgan Stanley's well-known "big bear" and chief stock strategist Mike Wilson also surrendered in May, raising the target price of the S&P 500 index from 4500 points to 5400 points.
Don't worry about the overly concentrated rise of the US stock market?
John Stoltzfus, Chief Investment Strategist at Oppenheimer, said in his report on raising the S&P 500, "As before, this is a fundamental issue... this includes consumer resilience, even in times of economic slowdown, there is still considerable resilience in the US economy, including resilience in business, employment growth, and wage growth."
His argument also refutes recent concerns about the overly concentrated rise in the US stock market. Due to a small number of technology stocks such as Nvidia dominating the S&P 500 index trend, investors have doubts about the sustainability of the current rise in the US stock market.
But Stoltzfer pointed out that although the returns of the "Big Seven" are indeed more than twice that of other components of the S&P 500 index, stocks in other sectors of the US stock market have also risen significantly since their low point in October last year.
He added that from this perspective, the upward range of the S&P 500 index has indeed been expanding. This upward trend should not stop, and investors are expected to continue expanding the range of gains.
"This is largely driven by medium to long-term investors, some of whom are just ordinary citizens who recognize that social security stability is facing a real threat, and people realize that they need to play a role in their retirement lives," said Stoltzfer
However, Oppenheimer's expectations for the Federal Reserve's interest rate cut are not very optimistic. Although the Federal Reserve is likely to cut interest rates later this year and boost the stock market, Oppenheimer does not agree with the market's optimistic view of a rate cut in September.