Traders on the ground of the New York Stock Exchange
Source: The New York Stock Exchange
JPMorgan‘s Marko Kolanovic advised CNBC on Thursday he expects bond yields to stabilize within the coming weeks, clearing the way in which for shares to maneuver higher on the backs of robust earnings growth.
The agency’s chief world markets strategist stated in an interview on “Fast Money” that he sees the S&P 500 rising to 4,400 within the “mid-to-medium time period,” representing about 12% upside from Thursday’s shut of three,915.46.
The broad fairness index fell 1.5% Thursday, after notching a file shut within the prior session. The transfer in shares got here as the 10-year Treasury yield rose once more, reaching 1.75% at its peak Thursday, a degree not seen since January 2020.
While the fast rise in bond yields has rattled fairness buyers this 12 months, taking the wind out of the sails of many high-growth know-how shares, Kolanovic stated he anticipates a relative calming on the horizon.