Top Wall Street Bull Says Stocks to Pause Briefly After Run
U.S. stocks are likely to take a breather from their rapid gains before a potential fresh catalyst arrives in the form of the next earnings season, according to Oppenheimer Asset Management.
Investors itching to see the S&P 500 build on the 11% advance in the final three months of last year may not have long to wait, with U.S. companies due to start reporting results at the end of next week.
“It’s not uncommon for markets to pause to digest a bull run of the magnitude experienced in the fourth quarter just ended,” Chief Investment Strategist John Stoltzfus wrote in a note. “In fact it would appear to us to make good sense for markets to pause considering the run-up in stock prices” from their October lows through December, he said.
A stronger-than-expected economy and expectations that the Federal Reserve would pivot to monetary easing propelled a 24% rally in the S&P 500 in 2023.
Stoltzfus was among few to correctly predict the U.S. benchmark would soar in 2023 and he’s staying optimistic, tipping the index to hit 5,200 before 2024 is out. That ties with Fundstrat’s Tom Lee for the most bullish forecast among strategists tracked by Bloomberg.
