MW The S&P 500 is back at a big milestone. Here's what one strategist needs to see to be even more optimistic.

By Barbara Kollmeyer

Oppenheimer's Stoltzfus is sticking to his near 6,000 target for now

Boosted by better-than-expected May payrolls, the S&P 500 shook off some worries and sprinted to 6,000 on Friday, moving past a few Wall Street targets.

Those include that of John Stoltzfus, chief investment strategist at Oppenheimer, who has held a 5,950 goal for the index since slashing it from 7,100 in April. Closing at 6,000.36 on Friday, the S&P 500 SPX logged its highest close since Feb. 21, and now sits just over 20% above its April 8 low of 4,982.77, meeting at least one definition of a bull market.

Stoltzfus told clients that it's the second time the S&P 500 has exceeded their target this year, but said they're in "no rush" to bump up their target.

Need to Know: Third time lucky? Citi changes its S&P target once more after index hits 6,000.

"With tariff level uncertainty still remaining high and with the debate in Washington over the budget still in process and yet unresolved, weare certainly considering it," he said. "But not without first practicing patience and right sizing our expectations in consideration of the near-term issues at hand that could invite volatility in the day-to-day activity in the markets."

Stoltzfus said Oppenheimer remains bullish on stocks, an asset class they favor over others. Within that, they prefer cyclicals over defensives - information technology, communications services, consumer discretionary, industrials and financials are their favorite sectors. Small-and midcap stocks could resume and see more "sustainable" rallies if the Federal Reserve reduces interest rates further, he added.

That's as the strategist highlighted supportive U.S. fundamentals - resilient payrolls last week and manufacturing surveys still holding up, and first-quarter earnings showing broad profit growth. Volatility could, however, limit further S&P 500 gains to 5% to 6%, if tariff and fiscal policies don't see any progress.

"Bears and market skeptics will likely remain on alert for any catalysts that could provide them opportunity to take profits from the recent rallies without FOMO (fear of missing out) amid what we believe may well be a secular (long-term) bull market driven by technological innovation," said the strategist.

What investors are left with is a market where they should keep looking for "babies that get thrown out with the bathwater," when market pullbacks occur, Stoltzfus said.

-Barbara Kollmeyer

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June 09, 2025 07:36 ET (11:36 GMT)

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