The ongoing rally in US equities is likely to expand beyond tech giants as interest rates move towards "normalization" and as both the consumer sector and job market continue to show resilience, Oppenheimer’s chief investment strategist said Wednesday.
“The market has a good support here. The Federal Reserve is doing a good job, and the lumpiness in inflation is a part and parcel of going through a normalization of interest rates,” the strategist told Bloomberg.
Analysts also stressed that despite other strategists, such as those at UBS, raising their forecasts recently, they will only adjust their target “unless it’s exceeded or becomes impractical.”
“There’s been a bear capitulation last year and this year at an extraordinary rate. It always concerns us when everyone comes to our side of the boat,” they said.
“There’s double-digit earnings growth in tech and cyclical sectors, so the positive attitude among the sea of strategists might not be a bad call. But we’ll keep the party hats in the box for now.”
The year-end target for the S&P 500 is 5,200, which is one of the more bullish predictions on Wall Street, implying around 4.5% upside from the last close.