TheSPDR S&P 500(NYSE:SPY) was spiking about 0.6% higher Monday despite the President of the Cleveland FedLoretta Mesterissuing a warning that the recent market rally, prompted by heightened hopes of imminent rate cuts, is premature.

Mester's sentiment on the central bank slashing borrowing rates early in 2024 echoes two other members of the Federal Reserve Open Market Committee but Goldman Sachs' chief equity strategist,David Kostin, sees the Santa Claus rally continuing into next year, based on the Fed's recent shift in tone.

Kostin bumped the year-end target for theS&P 500 index in 2024 to...