4.8.24: Wall St. Remains Bullish as Wells Fargo Upgrades SPX Target to 5535

For Public Readers: Weekly Key U.S. and China brief market notes by Larry Cheung's Analyst Staff Team for our Public Email List

Apr 08, 2024

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In our emails, we will provide the following coverage points:

Brief Overview of U.S. & China Markets
Macro Chart in Focus
U.S. & China Upcoming Economic Calendar
Chart That Caught Our Eye

U.S and China Markets Brief Snapshot 🇺🇸 🇨🇳

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S&P 500 Index: 5209.86

KWEB (Chinese Internet) ETF: $26.66

Analyst Team Note:
Wells Fargo recently increased its 2024 target for the S&P 500 Index to 5,535, the highest among Wall Street forecasts tracked by Bloomberg.
It attributes this bullish outlook to the transformative potential of AI technology, an improved earnings landscape, and a shift in investor behavior towards longer-term growth prospects and higher valuation thresholds.
Despite potential volatility and systemic risks associated with increased risk-taking and leverage, Wells Fargo anticipates a "melt-up" in market performance in the latter half of the year, supported by favorable political developments and anticipated multi-year interest rate cuts.

Macro Chart In Focus

Analyst Team Note:
In March, the US labor market saw a significant boost with nonfarm payrolls surging by 303,000, the most substantial increase in nearly a year, surpassing all economist expectations.
Key sectors driving this growth included health care, construction, and leisure and hospitality, with the latter recovering beyond its pre-pandemic levels.

Upcoming Economic Calendar

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U.S Economic Calendar (Upcoming Data Points)

China Economic Calendar (Upcoming Data Points)

Analyst Team Note:
In March, the Federal Reserve's Survey of Consumer Expectations found that while US consumers' short-term inflation expectations remained stable at 3%, concerns about debt repayment capability are escalating, particularly among the 40 to 60 age group.
Despite a stable outlook for the coming year, the forecast for inflation over a three-year period slightly increased to 2.9%, contrasting with a dip in the five-year expectation to 2.6%.
Notably, the concern over missing minimum debt payments surged to 12.9%, the highest since the pandemic's start, driven by a combination of high interest rates and sustained inflation.