US stocks wavered Monday after a record-setting week, with traders taking a moment to digest upgrades from Wall Street firms and fresh comments from Federal Reserve President Neel Kashkari hinting at a rate cut in December.
The S&P 500 and the Nasdaq set four straight record highs last week and closed higher for the seventh week of the last eight. However, on Monday, traders hit pause after the rally to assess the new outlooks from big Wall Street firms.
Goldman Sachs strategist David Kostin raised his year-end S&P 500 price target to 5,600, citing potential upside of about 3% from current levels. Kostin pointed to continued earnings growth from mega-cap tech stocks as a driver for the index to reach his new target.
Meanwhile, Evercore ISI raised its S&P 500 year-end price target to a street-high 6,000, predicting that continued AI hype would drive stocks higher for the next two years, potentially reaching 7,000 by the end of 2025.
In addition to the Wall Street upgrades, Federal Reserve President Neel Kashkari indicated in comments to CBS over the weekend that a rate cut in December is a “reasonable prediction.” Kashkari emphasized the need for more data on the economy and labor market before making any decisions.
Shortly after the opening bell on Monday, US indexes were slightly lower. In commodities, West Texas Intermediate crude oil rose to $78.52 a barrel, while Brent crude increased to $83.06 a barrel. Gold edged lower to $2,339.30 per ounce, and the 10-year Treasury yield jumped five basis points to 4.28%. Bitcoin also dropped to $65,590.
Overall, traders are navigating a mix of positive Wall Street outlooks and cautious Fed comments as they continue to monitor market movements following last week’s record-setting performance.
