[Wells Fargo Securities Raises S&P 500 Target to 7,950 Points: U.S.-Iran Ceasefire and Rate Cut Expectations Boost U.S. Market Sentiment] BlockBeats News, June 17: According to the latest research report from Wells Fargo Securities, the institution has raised its year-end target for the S&P 500 Index from 7,300 points to 7,950 points, citing the easing of U.S.-Iran tensions, declining inflationary pressures, and fully priced-in rate hike expectations as forming a 'triple positive resonance' for U.S. equities. The report highlights that with the anticipated signing of a temporary peace agreement between the U.S. and Iran and improved navigation expectations in the Strait of Hormuz, the global energy risk premium has significantly decreased. Falling oil prices are expected to help alleviate U.S. inflationary pressures and improve market expectations regarding the Federal Reserve's policy trajectory. Wells Fargo Securities equity strategist Wu Chengquan stated that current market sentiment has shifted from extreme caution to neutral. The AI and semiconductor sectors remain core growth drivers, while cyclical stocks are likely to see a rebound as geopolitical risks subside, with funds potentially continuing to rotate from defensive assets to risk assets. At the same time, the institution believes that the market has partially priced in the policy stance of the Federal Reserve's new chairman, Kevin Warsh. In the short term, inflation remains the primary variable, but the risk of further rate hikes is relatively limited. However, the report also warns of two major downside risks: first, the historical volatility pressure associated with the U.S. midterm election cycle; and second, the potential tightening of regulations in the AI industry, with related policy statements possibly disrupting the current core narrative driving U.S. stock market gains. Overall, Wells Fargo Securities believes that U.S. equities remain in a phase of sentiment recovery and structural market continuation, though the risk of rising volatility is accumulating. [Original Link]