Analysts at Citi just raised their year-end target on the S&P 500 to 2,900.
All thanks to support from the Federal Reserve.
“Barring a big shock, it is improbable to think of a trading range for the S&P 500 in the 2,500-3,000 area, but more likely in the 2,700-3,200 vicinity as monetary policy will be in place to prevent a 20% or greater decline,” noted the firm, as quoted by MarketWatch.
However, there are warning signs to be aware of.
“We envision volatility for equities as good news is being priced in and problems are being overlooked,” they noted.
“A second wave of debilitating COVID-19 cases that causes either new shutdowns or slower economic recovery would be challenging, not to mention the U.S. elections, but these are not immediate threats, and investors appear to only have short-term time frames currently,” they added. “We add that margin pressures from trade friction and weak year-over-year trends (despite better sequential activity) also matter.”