crashbandicootswitchtest| Wall Street just gave its highest forecast yet for the S & P 500

Brian Belski, chief investment strategist at BMO Capital Markets, raised the year-end target for the S & P to 5600 from 5100 on Wednesday in a research note, noting that market momentum was "likely to be sustained." Mr Belsky's 5600-point target will be up about 7 per cent from Monday's close.

"We are satisfied with this because we believe that the performance of the market is similar to that of 2021 and 2023, when we did not fully recognize the strength of the market momentum," Belsky wrote in a research note. "and this time we are trying to avoid that."

Belsky is the latest in a series of Wall Street strategistsCrashbandicootswitchtestThey raised the level.CrashbandicootswitchtestSet a year-end target to catch up with the stock market rally in 2024. The stock market has reached a high of 5200 this year, with strategists targeting a median of 4850.

But earnings growth this year has exceeded analysts' expectations, and the US economy has largely exceeded expectations. Of the 15 strategists tracked, 10 currently have a year-end target index of 5200 or higher.

The sharp rise in the stock market comes as investors actively adjust their expectations of a rate cut by the Federal Reserve (FED) this year. According to the data, there are signs that inflation is not falling as fast as economists had hoped, and investors now expect about two interest rate cuts this year, down from nearly seven peaks in early January.

This is in line with the Fed's latest summary of economic forecasts (SEP), which shows that most officials believe the Fed will cut interest rates two or three times this year.

"We have made it clear that we have underestimated the strength of the market momentum, especially given that investor expectations are largely in line with the Fed's policy guidance and the serious disconnect that existed at the beginning of the year," Belsky wrote. "

He admits that the stock market will have twists and turns along the way. Through historical analysis, Belsky believes that the market may not have seen its worst decline this year. Belsky's research shows that the average correction in the second year of the bull market is 9.Crashbandicootswitchtest.4%. The most recent correction in April was just over 5%.

But given that the index has rebounded from its April low, Mr Belsky is "now convinced that if there is a more severe correction, it could be at a higher level than we expected". This provides a higher landing point for the S & P 500 after the rebound.

Given the strong performance of the stock market at the beginning of the year, history suggests that further gains are likely in the future. Mr Belsky says there is a 70 per cent chance that the s & p 500 will rise more than 7 per cent by the end of the year in a year when it rose more than 8 per cent in the first five months of the year (as it is now).

"judging from historical trends, such a strong performance at the beginning of the year tends to last until the end of the year," Belsky wrote. "