NEW YORK – InfraCap’s Jay Hatfield predicts that the S&P 500 could reach a year-end target of 5,500, signifying a potential 9% increase, as the index hit a record high last week, closing above the 5,000 mark on Friday afternoon. Nonetheless, Hatfield believes that the market will experience stagnation in the near term as investors wait for the Federal Reserve to initiate rate cuts.
Hatfield noted, “I don’t think we’re just going to infinitely and quickly go to 5,500,” and added that the market might stall out around 5,000 or 5,100 until there is more clarity on both a Fed and ECB rate cut, likely in June, but possibly in May.
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all experienced gains last week, with all three major averages rising in 14 of the past 15 weeks. The Dow Jones edged 0.04% higher, the S&P 500 gained 1.37%, and the Nasdaq Composite rose by 2.31%.
Looking ahead, stock futures remained relatively unchanged on Sunday night, trading within 0.1% of their previous close. This stability suggests a cautious approach from investors, possibly waiting for more clarity on market developments.
Overall, the outlook for the stock market appears optimistic, with potential for further growth and stability in the near future, as indicated by Hatfield’s positive forecast for the S&P 500. While the market may experience some stagnation in the short term, the recent trend of positive weeks and the overall upward trajectory of major averages bode well for the stock market’s performance in the coming months.