Tech rebound could help market avoid a summer setback: Oppenheimer

He predicted the latest comeback of technology, and now Oppenheimer Asset Management’s John Stoltzfus believes Wall Street can avoid a worrying summer setback.

He cites tech’s recent outperformance as one of the main reasons it could be a positive summer for investors.

“That could be possible,” the company’s chief investment strategist told CNBC’s “Trading Nation” on Wednesday. “The fundamentals are looking a lot better and the bulls may win for the summer.”

The market is showing encouraging signs. On Wednesday, the Nasdaq, which has risen almost 11% so far this year, closed at an all-time high of 14,271.73. However, the broader S&P 500 and Dow have had a two-day winning streak.

The most recent activities take place against the backdrop of the recent calls for corrections.

From Invesco to CFRA Research and Moody’s Analytics, there are concerns that a pullback of 10% or more could rock the road this summer. Inflation defaults, talks about the Federal Reserve throttling, and Covid-19 variants are all risks mentioned in the pullback warnings.

Stoltzfus said negative headlines related to these risks could create volatility over the summer, but the impact shouldn’t be too deep.

“There’s always a chance … the market will have enough catalysts for bears and short-term traders without FOMO to take some profits,” said the bull.

It’s not the first time Stoltzfus has maintained his bullish stance. In early March, when tech stocks sold out, he told Trading Nation that this was a great buying opportunity. The Nasdaq is up 7% since that interview.

Stoltzfus is shrinking to the broader market, conceding that its S&P 500 year-end forecast of 4,300 may now be too low. The S&P 500 closed at 4,241.84 on Wednesday. His benchmark was considered one of the highest on the street when he released it in late December.

“The market has certainly developed very well so far. We think it will go further,” he said. “But our discipline is that we don’t raise our target until the average we are working with, in this case the S&P 500 index, closes above our target.”

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