Everything will rally into yearend, says Wells Fargo's Ohsung Kwon

Market Outlook - The market is expected to rally towards 7100 by year-end, driven by several factors including seasonality and potential tax refunds [1][2] - November, December, and January are historically positive months for lagging stocks, suggesting a favorable environment for a market rebound [1] Economic Indicators - Anticipation of a ruling on the AIPA Terrace refund in December or January could trigger a reflation trade [2] - Tax returns are projected to be larger this year, averaging $800 per person, which may further support economic activity [3] Consumer Sentiment - Recent negative sentiment in consumer stocks may indicate that the market has not fully priced in the potential benefits of upcoming tax refunds [5] - A contrarian buy signal from sentiment indicators suggests a potential rally in the S&P 500, historically showing a 7.5% increase over the next three months [5] AI Sector Insights - The AI capital expenditure cycle is still in its early stages, with ongoing investments expected to drive growth [6] - Concerns exist regarding hyperscalers' capital expenditures, as their free cash flow margins are declining, which may impact their competitiveness [7][8] Company Performance - Companies like Meta and Alphabet are experiencing mixed market reactions, with Meta facing punishment for its spending strategies while Alphabet is expected to see a significant drop in earnings growth despite revenue growth [9][10] - The sustainability of investments in AI technologies, particularly GPUs, raises questions about the long-term value derived from these expenditures [11]