Wall Street strategist maintains S&P index target level, ignoring expectations of loose monetary policy from the Federal Reserve.

Wall Street strategist Ed Yardeni said that despite last week's market rally following Federal Reserve Chairman Powell's hint at a rate cut, higher-than-expected August consumer price index, jobs report, and possibly "a few" other indicators could potentially delay the Fed's easing policy. Yardeni wrote on Sunday: "This is why we stick with our S&P 500 index targets 6600 by the end of 2025, and 7700 by the end of next year. We believe the subjective odds of this base-case scenario are 55%... If the Fed cuts rates in September as the market widely expects, a 'melt-up' scenario is more likely, possibly pushing the index to 7000 by the end of 2025." He added: "We expect that by 2026, the bull market will become increasingly profit-driven, rather than valuation-driven."