The S&P 500 has already broken through Piper Sandler’s year-end forecast of 6,600, notching an all-time high of 6,619. But according to the firm’s strategists, the rally is likely not over yet.
“Given the strong underlying trends and broadening breadth in this bull market, we suspect the 6,600 level may just be a ‘pit-stop’ before moving higher during Q4,” wrote Craig Johnson, managing director and chief market technician at Piper Sandler, in a note to clients.
While the brokerage is leaving its official year-end target unchanged, it highlighted that expected Federal Reserve rate cuts could keep the market’s momentum intact and offer tactical opportunities to “buy the dip.”
Current technical levels show support for the S&P 500 at 6,508, 6,480, and 6,391, with resistance marked higher at 6,648 and 6,803.
The NASDAQ Composite has also extended its winning streak, closing at 22,243 for a sixth straight record finish. Gains were led by Technology and Communication Services stocks, with sector ETFs XLK and XLC climbing to fresh highs. In contrast, Consumer Staples underperformed, with the XLP slipping below its four-month support level.
Investor attention now turns to the Fed’s decision on Wednesday, where a 25 basis point cut is widely expected. Ahead of the meeting, bond yields retreated, with the 10-year Treasury yield falling to 4.04%. Piper projects the benchmark yield will decline further to 3.50% by the end of the year.
In currency and commodity markets, the dollar slipped under 97, while gold and silver each rose about 1% to new records of $3,677 and $42.65, respectively, boosting sentiment in metals and mining stocks.
Despite recent swings in investor sentiment, market breadth continues to strengthen. Growth stocks have been outperforming value, with the Russell 1000 Growth Index setting new records. Piper’s own indicators—its 26-week New Highs and 40-week Technique measures—remain firmly positive.
“With our proprietary breadth indicators continuing to rise and defying the historical bearish seasonality of September, we believe there is still potential for further gains into year-end, especially for SMID-cap stocks,” Johnson said.
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