Easing Inflation Expected to Boost S&P 500, according to Oppenheimer
Easing inflation pressures will translate into even more gains for the S & P 500, according to Oppenheimer. The firm raised its year-end S & P 500 price target to 4,900 — the highest in AsumeTech’s Market Strategist survey. That forecast represents upside of 6.8% from Monday’s close of 4,588.96. Stocks have already had a stellar year. Through Monday’s close, the S & P 500 is up 19.5% for 2023. .SPX YTD mountain SPX in 2023 “Inflation stateside continuing to trend lower [is] showing that the Federal Reserve’s efforts are having effect in curbing untoward levels of inflation experienced since late 2021 and into mid-year 2022,” wrote chief investment strategist John Stoltzfus in a note Tuesday. “The Fed’s rate cycle now appears to be closer to a pause or an end than it has been since March of 2022, with both the CPI headline and CPI core numbers as well as other gauges showing improvement,” he added. Stoltzfus also said that “capitulation stock market bears on a near wholesale basis of late (on sizable and persistent gains since October last year) suggests that money held on the sidelines may flow into stocks in the months ahead.” To be sure, the strategist acknowledged some risks to his forecast, including geopolitical tensions, the Fed tightening policy more than needed and a “resurgence in commodity prices.” — AsumeTech’s contributed reporting.