Absence of Q4 earnings warnings could set stage for epic quarter: Ed Yardeni
Speakers
Ed Yardeni
— President, Yardeni Research
Summary
Ed Yardeni joins CNBC's Closing Bell to discuss the outlook for US equities, the economy, and earnings. He argues the US economy's resilience justifies higher valuation multiples and expects strong earnings, with the S&P 500 potentially reaching 7700 by year-end. He also says tariff and Fed uncertainties are known risks that the market is prepared for, and he comments on the Santa Claus rally seasonal pattern.
- Stocks are near milestones, with the Dow trying to reach 50,000 and the S&P 500 near 7,000.
- Ed Yardeni expects the S&P 500 could rise about 10% to 7,700 by year-end.
- He credits US economic resilience, record GDP, a productivity rebound, and upcoming monetary and fiscal stimulus.
- He expects earnings to deliver big time after a strong prior year.
- He views tariff and Fed chair uncertainties as known and likely priced.
- He discusses the Santa Claus rally, noting it may come early and looking at November-December.
Ideas
S&P 500 to 7700 by year-end
Ed Yardeni expects the S&P 500 to rise about 10% to 7700 by year-end. He cites the resilience of the US economy, real GDP at an all-time high, a productivity comeback, investors incorporating that resilience into higher valuation multiples instead of pricing recession, strong earnings, and upcoming monetary and fiscal stimulus that should keep the economy growing. He also views tariff and Fed risks as known and largely priced, supporting the bullish case.
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This CNBC video, published January 07, 2026, features Ed Yardeni discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Ed Yardeni · Tickers: SPY