Vanguard S&P 500 ETF (VOO) is moving higher today, building on momentum after jumping nearly 3% on Thursday, as the tone across markets continues to improve. After weeks of tension tied to the U.S.-Iran conflict, investors are beginning to price in the possibility of de-escalation, with oil prices easing and inflation concerns cooling alongside them. That shift has helped lift sentiment across equities, and with the S&P 500 pushing higher, VOO is following suit given its direct exposure.
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The move also follows the recent pullback, which left valuations looking more reasonable and brought buyers back into the largest names that carry the most weight in the index.
According to Wells Fargo’s Scott Wren, the broader setup still points higher. The senior global market strategist predicts the S&P 500 will climb to 7,500 by the end of the year, citing strong economic fundamentals and supportive market conditions.
The strategist points to several economic tailwinds driving his optimistic outlook, including continued AI-related capital expenditures and resilient consumer spending.
“Americans with jobs, unemployment rates low, and money in their pockets, they’re going to go out and spend it,” Wren said, adding that deregulation and potential tax rebates from the Big Beautiful Bill will further support growth.
On energy markets, Wren is taking a more cautious approach, trimming exposure to energy-related positions and reallocating toward financials (XLF), industrials (XLI), and utilities (XLU).
Wren acknowledged that inflation could tick up slightly, with Wells Fargo forecasting a 2.9% CPI expectation for year-end, but he remains unconcerned about its broader economic impact.
Wren also projects record earnings for the S&P 500, noting that “interest rates are not at levels that are going to really create a lot of headwinds for the economy.”
Wren emphasized the importance of remaining cyclically oriented rather than defensive during market dips, pointing to technical support levels around 6,380 to 6,400 on the S&P 500.
Looking ahead, Wren expressed confidence that the broader economic picture will improve as geopolitical tensions ease and global growth accelerates.
“You’re going to see the global economy pick up a little, and the U.S. economy do pretty darn well,” he concluded.
Meanwhile, TipRanks’ AI analysis points to steady upside potential even after recent market swings. The model maintains an Outperform view on VOO. That optimism is largely driven by the ETF’s heavy exposure to dominant, high-quality companies like Microsoft, Apple, and Alphabet, which continue to deliver strong earnings and benefit from long-term trends such as cloud computing and artificial intelligence.
Disclaimer: The opinions expressed in this article are solely those of the featured strategist. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.