Veteran analyst revamps S&P 500 forecast after massive rally

Core Viewpoint - The S&P 500 has reached an all-time high, and historical data suggests that the index may continue to rise in the coming months despite economic concerns [1][4]. Group 1: Market Performance - The S&P 500 has rallied over 30% since the spring's tariff-related downturn [1]. - Following new all-time highs, the S&P 500 has historically increased by an average of 0.7%, 2.1%, and 3.8% over the subsequent 30, 60, and 90 days, respectively, with frequencies of advance (FoA) at 63%, 76%, and 78% [5]. - When both the S&P 500 and the S&P Developed ex-U.S. Broad Market Index reach new highs on the same day, the average price increases are 1.2%, 3.7%, and 4.9% over the same periods, with FoAs improving to 70%, 82%, and 87% [6]. Group 2: Economic Outlook - Optimism surrounding the One Big Beautiful Bill Act and potential interest rate cuts by the Federal Reserve has outweighed concerns about stagflation [2]. - Sam Stovall, CFRA's Chief Investment Strategist, provides insights based on over 30 years of market experience, indicating that investors may not need to worry excessively about the market's direction in the near term [3].