Raymond James Investment Research Hub

Raymond James research highlights a period of resilient yet complex growth, as CIO Larry Adam raises the S&P 500 year-end target to 7,650 behind strong technology and energy sector performance. Despite this optimism, the firm notes significant headwinds including accelerating cost pressures and a global bond sell-off that tests new Fed Chair Kevin Warsh as PCE inflation is projected to accelerate to 3.8%. The US housing market remains notably 'frozen,' characterized by record-high prices of $417,700 and low inventory as elevated 6.51% mortgage rates discourage sellers with lower locked-in rates. Sector-specific insights reveal a bifurcated consumer landscape and a massive $159 billion year-to-date debt issuance by 'Hyperscalers' to fund critical AI infrastructure. Internationally, Raymond James recommends reallocating equity gains from the UK toward more promising regions like Japan and Emerging Asia to escape sluggish European GDP growth. Ultimately, the firm maintains a cautious outlook for the summer months, citing historical midterm election trends and persistent geopolitical tensions as potential catalysts for volatility.