Ed Yardeni maintains S&P 7700 year-end target (up ~10%) but expects a rocky path.
Becky
Ed Yardeni
Market is rocky today due to administration's actions regarding Jay Powell. Gold is at a record high. Supreme Court may rule Trump's tariffs unconstitutional, creating uncertainty. Bond vigilantes are active with yields at 4.2%.
Asks why markets will rise given long list of negative factors and geopolitical issues.
Becky
Ed Yardeni
Market is earnings-led. Earnings are strong because the economy is strong and resilient.
Asks about Fed cuts and Yardeni's worry about a 'melt up'.
Becky
Ed Yardeni
Sees little cause for Fed to cut rates. Bond market isn't signaling need for lower rates.
Asks about bank stocks falling on proposal to cap credit card rates at 10%.
Becky
Ed Yardeni
Bank sell-off is reaction to Powell investigation and rate cap idea. Legislation for cap is unlikely to pass Congress.