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S&P 500 Headed for Massive Highs Ahead? ETFs in Focus
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Key Takeaways
S&P 500 and Nasdaq posted six straight weekly gains on strong tech earnings and AI optimism.
Mary Ann Bartels sees the S&P 500 reaching 10,000 within three years, as quoted on CNBC.
ETFs like SPY, VOO and IVV remain in focus as oil-driven demand destruction may weigh on winning momentum.
U.S. stocks have offered an upbeat show last week thanks to a stronger-than-expected April jobs report and renewed hopes for a diplomatic breakthrough between the United States and Iran. Upbeat corporate earnings and continued strength in technology shares were added advantages.
The Nasdaq climbed 4.5% for the week, while the S&P 500 advanced 2.3%, with both benchmarks recording their sixth straight weekly gain – the longest winning streak since 2024.The Dow underperformed, rising just 0.2% over the same period.
Against this backdrop, Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, told CNBC’s “Power Lunch” that the S&P 500 could hit 10,000 to 13,000 in three years. Against this backdrop, let’s find out the potential of the S&P 500 index.
April Jobs Report Supports Market Sentiment
Investor sentiment improved after the Bureau of Labor Statistics reported that the U.S. economy added 115,000 nonfarm jobs in April, exceeding Dow Jones estimates of 55,000.
Meanwhile, the unemployment rate remained unchanged at 4.3%, matching market expectations. The data reinforced views that the labor market remains resilient, even as hiring momentum slows.
AI Boom Continues to Drive Market Rally
The artificial intelligence (AI) boom remained a key force behind the market rally, particularly in semiconductor and memory-related stocks.
The Q1 earnings for the ‘Magnificent 7’ group of companies are expected to be up +45.7% from the same period last year on +24.6% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +17.1% (vs. +24.2%). These data points signify the power pf artificial intelligence (AI).
Upbeat Earnings
The Q1 earnings season reconfirmed the steadily improving earnings outlook we have consistently highlighted in our earnings commentary. Most importantly, the substance and tone of management guidance has largely been reassuring, notwithstanding the uncertain geopolitical backdrop. This is keeping the aggregate revisions trend positive, which we discuss in some detail later on.
Earnings growth for 2026 is expected to be 19.3% over 6.8% revenue growth while earnings growth is expected to be 15.9% over 7.8% revenue growth, per Earnings Trends issued on May 6, 2026.
Any Wall of Worry?
Economists at JPMorgan Chase cautioned that persistently high energy prices could eventually weaken consumer demand. JPMorgan analysts noted that the supply cushions that previously protected the oil market from war-related disruptions are beginning to weaken, as quoted on CNBC.
They added that rising fuel costs are likely to trigger “demand destruction” as consumers adjust spending patterns in response to higher energy prices.
ETFs in Focus
Against this backdrop, investors can keep track of S&P 500-based ETFs like Vanguard S&P 500 ETF (VOO - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , and SPDR S&P 500 ETF Trust (SPY - Free Report) .
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S&P 500 Headed for Massive Highs Ahead? ETFs in Focus
Key Takeaways
U.S. stocks have offered an upbeat show last week thanks to a stronger-than-expected April jobs report and renewed hopes for a diplomatic breakthrough between the United States and Iran. Upbeat corporate earnings and continued strength in technology shares were added advantages.
The Nasdaq climbed 4.5% for the week, while the S&P 500 advanced 2.3%, with both benchmarks recording their sixth straight weekly gain – the longest winning streak since 2024.The Dow underperformed, rising just 0.2% over the same period.
Against this backdrop, Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, told CNBC’s “Power Lunch” that the S&P 500 could hit 10,000 to 13,000 in three years. Against this backdrop, let’s find out the potential of the S&P 500 index.
April Jobs Report Supports Market Sentiment
Investor sentiment improved after the Bureau of Labor Statistics reported that the U.S. economy added 115,000 nonfarm jobs in April, exceeding Dow Jones estimates of 55,000.
Meanwhile, the unemployment rate remained unchanged at 4.3%, matching market expectations. The data reinforced views that the labor market remains resilient, even as hiring momentum slows.
AI Boom Continues to Drive Market Rally
The artificial intelligence (AI) boom remained a key force behind the market rally, particularly in semiconductor and memory-related stocks.
The Q1 earnings for the ‘Magnificent 7’ group of companies are expected to be up +45.7% from the same period last year on +24.6% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +17.1% (vs. +24.2%). These data points signify the power pf artificial intelligence (AI).
Upbeat Earnings
The Q1 earnings season reconfirmed the steadily improving earnings outlook we have consistently highlighted in our earnings commentary. Most importantly, the substance and tone of management guidance has largely been reassuring, notwithstanding the uncertain geopolitical backdrop. This is keeping the aggregate revisions trend positive, which we discuss in some detail later on.
Earnings growth for 2026 is expected to be 19.3% over 6.8% revenue growth while earnings growth is expected to be 15.9% over 7.8% revenue growth, per Earnings Trends issued on May 6, 2026.
Any Wall of Worry?
Economists at JPMorgan Chase cautioned that persistently high energy prices could eventually weaken consumer demand. JPMorgan analysts noted that the supply cushions that previously protected the oil market from war-related disruptions are beginning to weaken, as quoted on CNBC.
They added that rising fuel costs are likely to trigger “demand destruction” as consumers adjust spending patterns in response to higher energy prices.
ETFs in Focus
Against this backdrop, investors can keep track of S&P 500-based ETFs like Vanguard S&P 500 ETF (VOO - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , and SPDR S&P 500 ETF Trust (SPY - Free Report) .