Top market researcher Ed Yardeni says the market bottom is in
Speakers
Ed Yardeni -- President, Yardeni Research
— Yardeni Research president
Summary
- Believes the market bottom (S&P 500) occurred on the Monday of the interview's week, citing a resolved geopolitical "exit ramp" as the catalyst.
- Maintains a year-end S&P 500 target of 7700, having anticipated a 10-15% correction (the market dropped 9%).
- Argues the U.S. economy can withstand elevated oil prices (~current levels) and that it could benefit the U.S. oil & gas industry due to its exporter status.
- Is bullish on the technology sector's comeback, stating it became "relatively cheap again" with P/E multiples falling from ~31 to 25, and even to 22 at one point.
- Notes a strategic shift: he recommended underweighting the "Magnificent Seven" on December 7 but has recently turned positive on the group.
- Downplays the severity of potential oil supply disruptions, revising initial estimates from a 20 million barrel/day shortfall to 10 million, and noting diplomatic talks (Iran/Oman) that may ease tensions.
Trade Ideas
Explicitly states "Monday was the bottom" for the market and is sticking to his 7700 S&P 500 year-end target. He had anticipated a 10-15% correction (the market dropped 9%). The catalyst for the bottom was the President's speech, which provided a clear "exit ramp" from worst-case geopolitical scenarios, similar to a market-positive event in the past (postponing "Liberation Day"). The resolution of immediate, extreme geopolitical risk removes a major overhang, allowing the market to rise toward his target. A re-escalation of the conflict or a new "worst case scenario" that cannot be postponed.
Says elevated oil prices at current levels are manageable for the U.S. economy and have a "positive impact on the US oil industry because we are exporters." The U.S. is a net exporter, so higher prices directly benefit domestic producers' revenues and profitability, unlike in past eras where it was a pure consumer cost. The domestic oil & gas sector is positioned as a potential beneficiary, not a victim, of the current price environment, warranting close monitoring. A severe supply disruption that drives prices to levels that harm global demand and the broader economy, overwhelming the exporter benefit.
States the tech comeback "absolutely" has legs and that tech got "relatively cheap again." Cites the P/E multiple falling from ~31 to 25, even hitting 22. The significant de-rating in valuation (P/E compression) after his prior call to underweight the sector (on Dec 7) has created a more attractive entry point. The valuation reset provides a foundation for renewed outperformance in the technology sector. A broader market sell-off that leads to further multiple compression beyond recent lows.
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This CNBC video, published April 02, 2026, features Ed Yardeni discussing SPY, XLE, XLK. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Ed Yardeni · Tickers: SPY, XLE, XLK