Wall Street's Most Optimistic Forecast! Oppenheimer Raises S&P 500 Year-End Target to 7100 Points

We have learned from Zhongtong Finance APP that on Monday, Oppenheimer raised its year-end target for the S&P 500 index to 7100 points, which is the highest among major Wall Street firms. The company is optimistic about the easing of trade tensions and strong corporate earnings. This new target means there is an 11% upside potential from the latest closing price. Previously, the firm had set its target at 5950 points.

In a report led by John Stoltzfus' Oppenheimer strategy team, it was stated: "As President Trump announced trade agreements with Japan and the EU... we believe that the 'tariff barrier' has been largely overcome."

The United States and the EU reached a trade agreement on Sunday, which imposes a 15% tariff on most European goods, including automobiles, semiconductors, and pharmaceuticals. The EU has pledged to purchase $7.5 trillion worth of US energy products and invest $6 trillion in the US economy. Last week, President Trump reached a deal with Japan worth $5.5 trillion.

Last month, Goldman Sachs, JPMorgan Chase, and Canadian Imperial Bank of Commerce also raised their year-end targets for the S&P 500 index. Since April 8th's low point, the S&P 500 index has rebounded by 28.2%, mainly driven by cyclical industries such as technology, industry, and communication services, which began to recover after President Trump implemented the "Tax Day" tariff policy.

Oppenheimer has raised its earnings per share (EPS) forecast for the S&P 500 index back to $275, which is the same value set in December 2024. Previously, it was downgraded to $265 in April.

Stoltzfus remains optimistic about US stocks, particularly cyclical stocks, and believes that as inflation slows, stock prices will continue to rise further. He also expects the Federal Reserve to maintain its interest rate unchanged at this week's policy meeting.