Investment firm Wells Fargo (WFC) says that the market is already looking past the war in Iran, with several bullish catalysts expected to push stocks higher in the coming months. In fact, the firm believes that the S&P 500 (SPX) could climb to around 7,300 by July, which would represent about a 6% gain from recent levels. According to strategist Ohsung Kwon and his team, this move could be driven by what they describe as a “three-month sugar high” that’s supported by policy changes and improving economic activity.
Claim 30% Off TipRanks
Trade SPY with leverageMore specifically, Wells Fargo points to the Trump administration’s tax program, which could boost consumer spending, along with a rebound in manufacturing and continued progress in AI monetization by tech companies. Furthermore, the upcoming World Cup in the U.S. is expected to increase consumer activity during the summer months. Because of this combination, the firm expects an upside surprise in economic growth in the second quarter. That said, risks remain later in the year.
Wells Fargo warns that higher energy prices could eventually lead to rising inflation, which tends to impact the economy with a delay. For example, consumer spending often slows a quarter after an oil shock, while core inflation typically increases about six months later. Nevertheless, market momentum is currently building, with the Nasdaq-100 on track for its longest winning streak since 2021. At the same time, other major firms have also become more optimistic, which suggests that Wall Street’s sentiment is shifting toward a more bullish outlook.
Is SPY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) stock based on 411 Buys, 84 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $826.51 per share implies 19.6% upside potential.
