Oppenheimer lifts S&P End of Year 500 target to Wall Street High with trade optimism

(Reuters) – Oppenheimer’s assets management raised its S&P 500 Index year-end target to 7,100 on Monday.

The current goal means 11.13% upside of the last 6,388.64 of the benchmark index. Oppenheimer previously set a target of 5,950 for the index.

“We believe that President Trump’s announcement of trade deals (Japan, the EU) has overcome enough ‘custom hurdles’ for now,” Oppenheimer strategist led by John Stolzfuss, said in a memo.

The US and the European Union finalized their trade contracts on Sunday, setting 15% tariffs on most European goods, including automobiles, semiconductors and drugs, and the EU has pledged to buy $750 billion in US energy and invest $600 billion in the US economy.

Last week, US President Donald Trump signed a $550 billion deal with Japan.

Earlier this month, Goldman Sachs, Bank of America and RBC Capital Market also raised S&P 500 targets

The S&P 500 has been heavily driven by the circular sectors, including technology, industry and telecommunications services, following Trump’s “liberation day” tariffs, rebounding 28.2% since April 8th.

Oppenheimer has reverted the S&P 500 profit estimate to $275. This was originally set for December 2024, so we set a forecast of $265 in April.

Stoltzfus continues to support US stocks, particularly cyclical stocks, and hopes it will rise further as inflation is eased, and the Federal Reserve will stabilize interest rates at this week’s policy meeting.

(Reporting by Rashika Singh of Bengaluru, edited by Shailesh Kuber)