Traders on the floor of the New York Stock Exchange
Source: The New York Stock Exchange
JPMorgan‘s Marko Kolanovic told CNBC on Thursday he expects bond yields to stabilize in the coming weeks, clearing the way for stocks to move higher on the backs of strong earnings growth.
The firm’s chief global markets strategist said in an interview on “Fast Money” that he sees the S&P 500 rising to 4,400 in the “mid-to-medium term,” representing about 12% upside from Thursday’s close of 3,915.46.
The broad equity index fell 1.5% Thursday, after notching a record close in the prior session. The move in stocks came as the 10-year Treasury yield rose again, reaching 1.75% at its peak Thursday, a level not seen since January 2020.
While the rapid rise in bond yields has rattled equity investors this year, taking the wind out of the sails of many high-growth technology stocks, Kolanovic said he anticipates a relative calming on the horizon.