Traders on the floor of the New York Stock Exchange
Source: The New York Stock Exchange
JPMorgan’s Marko Kolanovic told CNBC Thursday that he expected bond yields to stabilize in the coming weeks, clearing the way for stocks to rise higher on the back of strong earnings growth.
The company’s chief global markets strategist said in an interview with Fast Money that the S&P 500 will climb to 4,400 “medium to medium term,” an increase of about 12% from Thursday’s close of 3,915.46 corresponds to.
The broad stock index fell 1.5% on Thursday after hitting a record close in the previous session. The move in stocks came as the 10-year government bond yield rose again, hitting 1.75% at its peak on Thursday, a level not seen since January 2020.
While the rapid rise in bond yields has rocked stock investors this year and taken the wind out of the sails of many high-growth technology stocks, Kolanovic expects a relative calm on the horizon.