S&P 500 Rally Powers Ahead: Where Will the Stock Market Go from Here?

US Departmentof the Treasury has announced smaller-than-expected increases in the size of longer-term debt auctions, while the Federal Reserve has hinted that interest rates are unlikely to rise again before the end of the year. As a result, government bond yields, which have been responsible for much of the recent volatility, have dropped after surpassing 5% for the first time in 16 years in October. This has given stock market bulls confidence.

Some investors have been pouring money into U.S. stock exchange-traded and mutual funds, while others have abandoned trades that would benefit from market turmoil. According to LSEG Lipper Global Fund Flows, these funds drew approximately $4.2 billion in the week ending November 8th, one of the largest hauls this fall and marking a three-week streak of inflows.

Hedge funds and other money managers have reduced their bearish bets against the S&P 500 to the lowest levels since June 2022, while bets against Nasdaq have fallen to the lowest level since March. This suggests that traders are becoming more optimistic about the direction of the markets.

Chief investment strategist Michael Hartnett broke from his usual bearish view to say technicals no longer stand in the way of a year-end rally for the S&P 500 Index. And Savita Subramanian, head of US equity and quantitative strategy and an optimist on stocks this year, said now was a better time to buy the US benchmark relative to its July peak.

Here are the current 2023 targets from top strategists.

● Maximum target: 4,700

● Minimum target: 3,900

● Average target: 4,358

● Median Target: 4,450