Yardeni Research Founder Ed Yardeni Talks S&P Outlook, Fed & Oil Prices | Bloomberg Talks

Ed Yardeni, President of Yardeni Research, has lowered his year-end S&P 500 target to 7,900, citing increased bearish risks driven by geopolitical instability and financial market volatility. Escalating conflict in the Middle East threatens to keep oil prices "higher for longer," potentially spilling over into core inflation and prompting additional Federal Reserve rate hikes. A critical concern is the disorderly unwinding of the Japanese yen carry trade, where hedge funds are forced to exit global bond positions as the Bank of Japan faces pressure to raise interest rates. While corporate earnings remain robust due to "fabulous earnings momentum" and the U.S. economy stays resilient, valuation multiples face pressure from rising global bond yields and a maturing AI narrative. Consequently, the path to loftier market targets is likely delayed until mid-next year as investors navigate a coordinated global bond rout and shifting monetary policies.