Wells Fargo Top Strategist Stands by Bold S&P 500 Target of 7,007

Despite a year marked by volatility and market uncertainty, Christopher Harvey, head of equity strategy at Wells Fargo Securities, is holding firm on his aggressive S&P 500 target of 7,007. In a recent interview with MarketWatch, Harvey said he never wavered in his forecast, even as the index flirted with bear-market territory.

“I was asked many times if I was going to change [the target], and the answer was always, ‘No change,’” Harvey said.

Harvey’s conviction is rooted in a view that the latter half of 2025 will bring stronger market conditions. He believes the economic backdrop — particularly consumer resilience and easing trade tensions — supports further gains. “The economy and consumer strength weren’t stellar, but they were solid,” he said. “And we viewed the tariff threats as mostly a negotiating tactic, which has largely been the case.”

Although the S&P 500 has bounced back into positive territory for the year, it still needs a nearly 19% rally to reach Harvey’s 7,007 target. But he has a track record of accurate calls, including a near-perfect prediction of the S&P’s 2024 close (5,881 versus his 5,830 forecast) and successful forecasts for both the 2021 rally and the 2022 selloff.

“It’s still a strong target,” Harvey said. “We continue to see double-digit upside.”

A key factor in reaching that target, he believes, will be interest rate cuts from the Federal Reserve — something Wells Fargo has consistently projected for later this year. “Inflation expectations are falling,” he said. “Our research also suggests that companies aren’t pushing prices as aggressively as headlines suggest. Price hikes have been relatively modest.”

Consumers, Harvey added, remain highly price-sensitive, often opting for cheaper alternatives or adjusting their spending habits — limiting companies’ ability to pass on higher costs.

Progress on trade has also helped shore up his bullish outlook. With recent deals involving the U.K. and China, Harvey believes there’s growing momentum for broader agreements. “The 90-day pause on U.S.-China tariffs puts pressure on other nations to engage more seriously in trade negotiations,” he said. “And greater clarity on trade gives the Fed more flexibility to ease.”

With macroeconomic headwinds easing, Harvey expects investors to shift their focus back to fundamentals. Over the next 6 to 18 months, he sees promising opportunities tied to secular growth in artificial intelligence, regulatory shifts, and increased merger and acquisition activity.

Harvey is particularly bullish on AI, which he says is proving more resilient than many anticipated at the start of 2025. Unlike the dot-com era — when heavily indebted telecom companies drove infrastructure spending — today’s AI build-out is being led by well-capitalized tech giants with the resources to scale rapidly.

Earlier this month, his team released a list of AI-related “picks and shovels” stocks — companies providing the infrastructure behind the boom. The list spans sectors and includes names like Nvidia, Broadcom, NextEra Energy, Arista Networks, and Marvell Technology.

Harvey also drew comparisons between this year’s market turbulence and the early days of the pandemic, noting that both were driven by external shocks rather than systemic economic weakness. “The underlying economy and corporate balance sheets were — and are — in decent shape. Not perfect, but stable,” he said.

That stability is part of why Wells Fargo is sticking with its bullish target. Still, Harvey acknowledges the road ahead isn’t risk-free.

“We’re not completely in the clear,” he said. “There are still concerns about interest rates moving higher, which could present short-term headwinds. But overall, the backdrop remains supportive of further gains.”