S&P 500 Hits 6,173 Points New All-Time High

Ed Yardeni, president of Yardeni Research, has expressed a bullish outlook on the S&P 500, predicting that the index is set to reach new all-time highs. Yardeni's optimism is grounded in the resilience of the US economy and the fading of various uncertainties that have previously weighed on the market. He acknowledges recent economic data showing some weakness but attributes this to outdated information reflecting past uncertainties that are now dissipating. Yardeni is particularly hopeful about the resolution of the trade war, forecasting that it will be settled by the end of the summer.

Yardeni's bullish stance is bolstered by historical trends where risk assets, such as stocks, have often rallied despite widespread investor caution. He points out that current market sentiment indicators remain wary and cautious, which he views as a positive sign. This cautious sentiment suggests that many investors have not fully embraced the market's recovery from its recent correction, leaving room for further gains. According to Yardeni, the market's ability to climb a "wall of worry," where stocks continue to rise even as investors remain sidelined by fear and uncertainty, is evident in the current market environment. The S&P 500 closed at 6,173 points on Friday, marking a new all-time high. Yardeni's analysis underscores the market's potential for continued growth, driven by a resilient economy and the fading of previous uncertainties.