Polcari: 7,000 SPX to Close 2025, Likes AVGO, ORCL & CRWV in A.I. Beatdown

Economic Indicators - Non-farm payrolls showed better job growth than expected, contrasting with the previous ADP report indicating job losses [2] - Unemployment rate increased to 4.6%, which is still within the range of almost full employment, with concerns rising if it approaches 5% [3][4] - The bond market indicates a concern about inflation, with expectations that rates may trend higher rather than lower [6] Oil Market - Oil prices are currently at $55, attributed to a supply glut expected to persist until 2026 [7][8] - OPEC is likely to maintain production levels, and if oil prices come under pressure, OPEC may cut back production [9] - Lower oil prices are beneficial for consumers and manufacturing due to reduced energy and transportation costs [10] Technology Sector - Companies like Broadcom, Oracle, and Core Weave have seen significant declines, with some down 40-50%, indicating investor concerns about overvaluation in the AI infrastructure space [13] - A disciplined approach to buying tech stocks is suggested, looking for pullbacks of 20% or more to identify buying opportunities [15][16] - The S&P 500 could potentially reach 7,000 if it breaks through the recent high of 6,920, which would trigger buying activity [22] Healthcare Sector - Merck is highlighted as a strong investment opportunity due to its recent performance improvement and dividend payments, indicating a positive outlook for the healthcare sector [24][26] - The healthcare sector has recently shown a recovery, with a notable increase of about 11-12% in the last couple of months [26] Quantum Technology - A mid-cap company in the quantum space, IQ Ionic, is noted as a potential investment opportunity, with expectations that quantum technology will become a significant theme in AI by 2026 [27][28]