It's 'very possible' the S&P 500 could hit 7,000 before year-end, says Malcolm Ethridge

Market Overview - The current market is characterized by a narrow focus on Mega Tech companies, but there is an expectation that the market will broaden as the economy improves [2][4] - The last two years have seen the narrowest market breadth since 1998-1999, with a bifurcated economy affecting different sectors differently [3][4] Economic Indicators - The labor market is showing signs of weakness, with a significant drop in job creation, averaging only 27,000 jobs recently [9] - Concerns are rising about unemployment, with surveys indicating that people are increasingly worried about job availability [10] AI and Workforce Dynamics - Companies are undergoing layoffs to improve productivity metrics, with Nvidia's workforce productivity serving as a benchmark [11] - The integration of AI into workflows is prompting a shift in hiring practices, as companies will need to hire workers who can work alongside AI rather than those whose jobs have been replaced [12][13] Future Projections - Analysts predict that the S&P 500 could reach 7,000 by year-end, driven by excitement around AI developments and upcoming earnings reports from major companies [5][6] - The AI narrative is expected to continue influencing the market positively for the next couple of years, particularly if revenue growth from AI products is sustained [7]