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By 
February 23, 2024 at 09:29 AM
What You Need to Know
- Yardeni sides with the Fed's outlook for two to three rate cuts this year, defying market predictions of up to seven cuts.
- AI stocks, led by Nvidia, are playing a pivotal role in the market's ascent, he says.
- Predicting an AI-driven surge in productivity, Yardeni sees technological investments as key to economic growth.
Ed Yardeni, the president of Yardeni Research, expects the S&P 500 to reach 5,400 by year-end.
The economist and investment expert named his target Thursday on CNBC’s “Squawk Box,” where he also referred to the current market, led by artificial intelligence-related stocks, as “the roaring 2020s.”
The S&P 500 and the Dow Jones Industrial Average both hit all-time highs during trading Thursday as Nvidia, the AI market phenom, surged over 16%, hitting a record $785.60, after reporting better-than-expected fourth-quarter earnings. The S&P 500 surpassed 5,094.
Yardeni also agreed with the Federal Reserve’s signal that it would cut interest rates this year only two or three times, not the five to seven that many in the market had expected.
“Why mess with success? Inflation’s coming down, the economy’s strong, the labor market’s doing well, and now we’ve got the roaring 2020s in the stock market, led by Nvidia,” he said.
