Wall Avenue’s Largest Bull, Christopher Harvey, Sticks to S&P 500 Goal of seven,007 Regardless of 2025 Volatility
NEW YORK, Might 14, 2025 – Christopher Harvey, Wells Fargo Securities’ chief fairness strategist and certainly one of Wall Avenue’s most steadfast optimists, has maintained his year-end S&P 500 goal of seven,007, even after a turbulent first half of 2025 marked by a historic selloff. His unwavering bullish stance, first set initially of the yr, tasks a 24% rise from the index’s present stage of round 5,672, following a exceptional nine-session, 10% restoration streak—the longest successful streak in over 20 years.
In a current Bloomberg interview, Harvey attributed his confidence to resilient company earnings, anticipated to develop 14.8% in 2025, and a strong U.S. economic system supported by client spending and job development. He highlighted the Federal Reserve’s anticipated price cuts—doubtlessly 4 to 5 in 2025, per Glenmede’s Jason Delight—as a tailwind for equities, regardless of inflation considerations lingering at 2.8%, above the Fed’s 2% goal. Harvey additionally pointed to the broadening market, with 41% of S&P 500 shares outperforming the index in 2024, up from 26% in 2023, signaling more healthy participation past the “Magnificent Seven” tech giants.
The selloff in March and April 2025, triggered by President Donald Trump’s sweeping tariffs and fears of stagflation, noticed the S&P 500 drop practically 7% in its worst week since 2020, with the Nasdaq 100 briefly coming into bear market territory. Harvey acknowledged the tariff-related headwinds, noting they “jeopardize inflation and development,” however argued that the market’s swift rebound displays investor optimism about Trump’s pro-business insurance policies, akin to company tax cuts and deregulation. He dismissed recession fears, citing stable financial development (2.8% GDP in Q3 2024) and declining Treasury yields as supportive components.
Nonetheless, Harvey cautioned that prime valuations, with the S&P 500’s ahead P/E ratio within the ninetieth percentile, may cap good points if earnings don’t ship. He additionally flagged dangers from potential commerce wars, significantly if China and different nations escalate retaliatory tariffs, and a attainable reversal within the AI-driven tech rally, which has fueled a lot of the market’s good points. “The bull market is maturing, however it’s not over,” Harvey acknowledged, emphasizing alternatives in small-cap and worth shares because the market broadens.
His optimism contrasts with different strategists who scaled again forecasts. Deutsche Financial institution’s Binky Chadha lower his S&P 500 goal to six,150 from 7,000, and Oppenheimer’s John Stoltzfus lowered his to five,950 from 7,100, citing tariff impacts. Yardeni Analysis’s Ed Yardeni additionally diminished his goal to six,400 from 7,000, warning of stagflation. Harvey’s 7,007 stays the very best on Wall Avenue, outpacing Fundstrat’s Tom Lee, who predicts 6,600 by year-end after a mid-2025 peak of seven,000.
Posts on X replicate combined sentiment, with some customers praising Harvey’s “gutsy name” throughout the selloff, whereas others warn of overvaluation and tariff dangers, echoing Morgan Stanley’s Michael Wilson’s bearish 5,500 goal. Harvey’s monitor report, together with his prescient 2024 bullishness, lends weight to his outlook, however he advises traders to brace for volatility as commerce insurance policies and Fed actions unfold.
Sources: Bloomberg, CNBC, Yahoo Finance, Reuters, posts on X
