Deutsche Bank’s Binky Chadha lifted his year-end target for the S & P 500 on Thursday, saying the market has more room to run despite current turmoil. Chadha, the firm’s chief U.S. equity and global strategist, now expects the broad stock market index to end 2024 at 5,750, an increase of 250 points from his prior forecast. That would mark a 3.5% increase from Wednesday’s closing level and a return of 20.5% for the calendar year. He tied this call to the fact that valuations are supported despite being at the top of their fair-value ranges. Chadha also said the earnings growth has been robust and should continue to expand at low double-digit percentages, typical for years when the economy is not in a recession. .SPX YTD mountain S & P 500, year to date He said to expect more choppiness, such as what investors have experienced in recent weeks, even as the market recovers from its current correction. Chadha expects prices to retreat again going into the presidential election, only to rally afterward to year-end. Chadha’s prior 5,500 target was first broken in early July, and only slightly above the average on Wall Street, according to CNBC Pro’s survey of strategists. Now, his updated forecast is among the highest of strategists polled. The S & P 500 has added about 2.5% in the third quarter despite rocky trading. That has brought its year-to-date gain to more than 17%.
