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  • Writer's pictureRealFacts Editorial Team

Stovall Predicts S&P 500 to Surge Further Amid Positive Economic Indicators

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In CNBC’s article “There’s a new big bull on Wall Street, and he sees the S&P 500 rising above 5,400 by year-end,” Yun Li quotes Sam Stovall, the chief investment strategist at CFRA, saying, “What is encouraging is we’re continuing to see earnings come in better than expected not only for 2024 but also now a near 15% projected advance for 2025,” Sam stands out as a prominent figure on Wall Street, offering a remarkably optimistic perspective on the S&P 500 index. He recently revised his year-end target to 5,415, a substantial increase from the previous projection of 4,940, signaling a potential 13.5% gain for the year. This adjustment places Stovall among the most bullish forecasters, trailing only John Stoltzfus of Oppenheimer, who targets 5,500.

Stovall's optimism is rooted in several key factors, including a robust earnings season and promising signs of inflation moderation. Speaking on CNBC's "Squawk Box," he highlighted the trend of earnings exceeding expectations and projected a nearly 15% advance for 2025. Moreover, he noted encouraging economic indicators, suggesting a potential moderation in inflationary pressures. These positive developments, along with Federal Reserve Chair Jerome Powell's assurance of minimal prospects for imminent rate hikes, have propelled the S&P 500 to a commendable 9% year-to-date increase, largely fueled by the sustained upward trajectory of major tech entities.

In Stovall's assessment, this momentum appears poised to continue, with the S&P 500 potentially reaching 5,610 within the next 12 months, representing a further 7.6% increase from its recent close. His bullish stance reflects a convergence of market dynamics and economic indicators, fostering a prevailing sense of optimism within the investment landscape.

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