US MARKET CALL: Investors Curbing Their Enthusiasm As Less FOMO Offsets More FEMO

I. Curbing Our Enthusiasm

Last week on Tuesday, we pushed our 8,400 year-end target for the S&P 500 to mid-2027. Our new year-end target is 7,900. We remain confident in the resilience of both the economy and S&P 500 companies’ earnings per share (EPS). On the other hand, we think recent developments may weigh on their stocks’ valuation multiples for the rest of the year.