S&P 500 Surges Past Piper Sandler’s Target, Rally May Continue
The S&P 500 has already surpassed Piper Sandler’s year-end target of 6,600, setting a record high of 6,619. Despite reaching this milestone, strategists believe the index has more room to climb.
Craig Johnson, managing director and chief market technician at Piper Sandler, noted that the 6,600 level may only be a “pit stop” before the market pushes higher in the fourth quarter. While the firm is keeping its official target unchanged, it expects upcoming Federal Reserve rate cuts to support further gains and create “buy the dip” opportunities.
Current support levels for the S&P 500 stand at 6,508, 6,480, and 6,391. Resistance is projected at 6,648 and 6,803.
The NASDAQ Composite also extended its winning streak, closing at a new record of 22,243 for the sixth consecutive session. Technology and Communication stocks led the rally, with sector ETFs XLK and XLC both reaching all-time highs. Meanwhile, Consumer Staples underperformed, with the XLP breaking below four-month support.
Markets are now focused on the Fed’s expected 25-basis-point rate cut on Wednesday. Bond yields eased ahead of the decision, with the 10-year Treasury yield falling to 4.04%. Piper Sandler expects yields to decline further to 3.50% by year-end.
The dollar weakened below 97, while gold and silver both rose about 1%, hitting record levels of $3,677 and $42.65. The move lifted metals and mining stocks.
Market breadth continues to improve, even as sentiment dipped slightly. Growth stocks outperformed value, with the Russell 1000 Growth Index hitting new highs. Piper’s proprietary breadth indicators also remained supportive of the uptrend, signaling resilience despite September’s typically weak seasonality.
“With our proprietary breadth measures rising and overcoming September’s bearish history, we see more upside potential into year-end—particularly for SMID-cap stocks,” Johnson added.
