Wobbles by the S&P 500 near fresh highs has caused skittish behavior by Wall Street's smart money recently. That will help smooth a path to 7,000, says this trader.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.
Gains haven't been limited to the companies at the top of the S&P 500.
These stocks have low price/earnings ratios, and most have been overlooked by investors this year.
Traders eye Powell's tone, dot plot, and yield curve to gauge if Fed cuts boost US stocks—or stoke inflation fears.
The S&P 500 posted four straight days of gains before inching down on Friday. The index ultimately finished the week up 1.6%, marking its fifth weekly gain in the past six weeks.
According to FactSet, the consensus target for the S&P 500 over the next 12 months is a shade below 7245. That's up from a target of about 6600 in May.
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The S&P 500 notched another record high last week but slipped on Friday after the weak jobs report for August. The index ultimately posted a gain of 0.3% for the week, its fourth in the past five weeks.
U.S. stocks were struggling in early-afternoon trading Friday, as the latest jobs data for August helped revive investors' worries about a slowing labor market.
The S&P 500 SPX ran into some trouble at the start of September — often cited as the worst month, historically, for the stock market. But the index is finding support in the 6,340-to-6,360 area, and this sets the stage for another move to new all-time highs.
The share of active large-cap managers beating the S&P 500 rose during the first half of the year, data show. The number of stocks outperforming the index has also increased.