BMO now has the most optimistic 2024 market outlook, with the bank calling for a sizable move higher heading into year-end. Chief investment strategist Brian Belski lifted his year-end target for the broad index by 500 points to 6,100. That new forecast implies the S & P 500 can climb 8.6% from Wednesday's close. It is also the highest among strategists included in CNBC Pro's exclusive survey and about 9.5% above the average. "Much like our last target increase in May, we continue to be surprised by the strength of market gains and decided yet again that something more than an incremental adjustment was warranted," Belski told clients in a Thursday note. .SPX YTD mountain S & P 500 YTD Belski said his update came after yet another rebound in equities pushed the index to trade around his prior target. Even if the S & P 500 tests lows seen during September's choppy trading, the investing strategist said he remains confident that it can rise into year-end. He said the fourth quarter should be much stronger than normal, especially given that the Federal Reserve has begun cutting interest rates. The central bank on Wednesday slashed the key overnight borrowing cost by a half percentage point, marking the start of its first easing campaign since 2020. What's more, Belski said the market should be aided by the broadening out within the equity rally. That can supply upward momentum even if large-cap technology stocks sit out of gains into the end of the year, he noted. Belski did not change his earnings per share target. While he said the implied price-to-earnings multiple of 24.4 times may appear "elevated," Belski said it is in line with what was seen during the mid-1990s — a period considered comparable if the U.S. economy does not tip into a recession. The S & P 500 has climbed more than 19% in 2024.
