Caifinance News on November 5th (Editor Bian Chun), influenced by factors such as the Fed's rate cuts, the hot AI investment, US stocks have hit new highs this year, but have recently experienced some pullback. However, a Wall Street strategist pointed out that US stocks will continue to rise by the end of the year.

JPMorgan's chief US stock strategist Mike Wilson believes that as investors breathe a sigh of relief after the US presidential election and the year-end Fear Of Missing Out (FOMO) sentiment begins to show, the s&p 500 index may continue to rise in the final stage of 2024, a 5% increase from now is not impossible.

However, Wilson also warns that due to the lack of clear catalysts, this enthusiasm may fade with the arrival of 2025.

"If there is not too much panic in the market, people feel good about things, I think the s&p 500 may rise to 6000 points," Wilson said in a media interview on Monday. This means that the index may rise by about 5% from its current level.

On Monday, as the US election entered its final countdown, the three major US stock indexes collectively fell with most investors staying on the sidelines. As of Monday's close, the s&p 500 index fell by 0.28% to 5712.69 points; The nasdaq index fell by 0.33%, to 18179.98 points; The dow jones industrial index fell by 0.61% to 41794.6 points.

Wilson further stated that the s&p 500 index could rise to a high of 6100 points, but due to factors such as overvaluation, the index will not exceed 6100 points under any circumstances this year.

The s&p 500 index just recorded its first monthly decline since April, as some companies among the "magnificent 7" of technology giants that had previously driven the index higher released weak financial reports. Although traders remain anxious about Tuesday's US presidential election and Thursday's Federal Reserve interest rate decision, most Wall Street forecasters predict that once these obstacles are cleared, the stock market can resume its upward trend.

"We may see some form of rebound after the election," Wilson said. "Then reality sets in, and no matter who wins, we must undergo some form of financial restructuring. This will once again bring uncertainty."

As the U.S. presidential election enters the final stage, opinion polls show that in both the national scale and the key swing states that will determine the election results, the two-party presidential candidates, Harris and Trump, are evenly matched.

"I don't agree that a Republican landslide is the most favorable view for the stock market," Wilson said. "I think the (best outcome) may be a Trump victory, but with Congress controlled by the two parties respectively. The market likes uncertainty. They don't like one-party dominance."

He believes that Trump's election as president "may be more favorable for economic growth." If Trump wins, the performance of cyclical stocks such as financials and industrials should stand out, while if Harris is elected president, the boost to economic growth may not be as good as Trump's, which could be beneficial for bonds.

Morgan Stanley strategist Dubravko Lakos-Bujas also expected on Monday that once the U.S. presidential election results are announced, U.S. stocks in the final stage of 2024 will rise, especially in the case of a political deadlock.