The S&P 500 fell 4.4% on Thursday, and the Nasdaq 100 fell 6.4%; the S&P 500 rebounded 0.3% on Friday, but has fallen 2.5% since the midterm election results were announced. Market concerns linger regarding potential tightening regulations on the data center and AI industries following a Democratic victory.
Morgan Stanley's chief U.S. equity strategist, Mike Wilson, said the next two to three weeks would be a good time to increase positions, maintaining his year-end target of 8,000 for the S&P 500. Bloomberg data shows that the average year-end target for the index from major Wall Street institutions is 7,973.
Ed Yardeni, chief investment strategist at Yardeni Research, characterized the decline as a correction with a year-end target of 7,900 points. Jonathan Golub, chief equity strategist at Seaport Global Holdings, gave a year-end target of 8,200 points, calling himself a staunch buyer.
Wells Fargo's chief equity strategist, Ohsung Kwon, has a year-end target of 7700 points, noting that the semiconductor and AI infrastructure sectors will remain under pressure. The Philadelphia Semiconductor Index fell 12% on Thursday, and is down 36% from its June high. Kwon believes that if concerns about a contraction in AI investment persist, tech giants like Alphabet and Amazon may find support. (Source: Bloomberg)
