There could be three rate cuts this year, says Evercore ISI's Julian Emanuel

Summary

Julian Emanuel of Evercore ISI reiterates his year-end S&P 500 target of 7,750, citing better earnings, stimulus, and three Fed rate cuts versus the market's expectation of two. He warns that a lack of fear and low volatility are the biggest issues but still expects markets to move higher. On AI, he says uncertainty has intensified and corporate America must prove it can drive revenue and cut costs with AI, which could lead to an AI bubble and S&P 500 at 9,000. He also discusses weak CPI and strong GDP data, suggesting no rate cut until June.

• Evercore ISI's Julian Emanuel maintains a year-end S&P 500 target of 7,750.
• He expects three Fed rate cuts this year versus market expectations of two.
• He sees better earnings and stimulus supporting markets higher.
• He warns that low volatility and a lack of fear are key concerns.
• He says AI trade uncertainty has intensified on capex and adoption.
• He argues corporate America must prove AI drives revenue and cost cuts.
• He suggests a potential AI bubble could take the S&P 500 to 9,000.
• He notes weak CPI and strong GDP, implying no cut until June.