Market veteran Ed Yardeni believes the S&P 500 can still post double-digit gains this year despite the banking crisis and fears of a hard landing. “This banking crisis is going to be very well controlled by both the Fed and the FDIC. And at the same time, I think it’s going to keep the Fed from raising interest rates even further,” Yardeni said on CNBC’s “Closing Bell” Wednesday. . The Federal Reserve last week raised the benchmark Fed Funds rate a quarter of a percentage point higher to a range between 4.75%-5%, while signaling another rate hike this year. Yardeni said he doesn’t think the Fed will cut rates this year. “I think they’re at a sufficiently restrictive level right now where they don’t have to keep raising interest rates,” he said. .SPX 1Y mountain S&P 500 The president of Yardeni Research set his S&P 500 full-year target at 4,600, which would translate into gains of about 20% for the year and a 14% rally from Wednesday’s close on 4,027.81. He said the economy has been in a “rolling recession” since the start of 2022, in which the downturn hit different sectors at different times without the sum total doing serious damage to the wider economy. “We’ve seen a lot of bubbles burst without bringing the economy down,” he said.
Ed Yardeni says the S&P 500 could rise double digits to finish the year at 4,600
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