had their worst days since Jan. 3. The S&P is now 5% below its all-time high hit on May 1, and the blue chip index is down 6% off its record high.
But Dwyer, who has been predicting a 3% to 5% pullback for weeks, believes most of the pain has now filtered through the market. "You are seeing signs of a little bit of excessive selling on the very near term," he said. "We are pretty much there on a news-driven event." His S&P year-end price target is 2,950, 5% below current levels. Trade deal or no trade deal, Dwyer contends the market will regain its footing in the second half of the year and rally — citing low interest rates and the potential for a Fed rate cut to spur more economic growth.
"This entire bull run has been about slower growth," said Dwyer. "That will allow the Fed room to cut rates which will steepen the yield curve."