'EARNINGS-LED MELT-UP': The market label turning heads on Wall Street

• The market is experiencing an 'earnings-led melt-up' due to 'Fabulous Earnings Momentum' (FEMO), which is more sustainable than 'Fear Of Missing Out' (FOMO).
• AI is fueling this momentum through the data revolution, processing data cheaply and quickly, creating a 'virtuous cycle' with no shortage of data.
• Yardeni has raised his S&P 500 year-end target to 8250, with a long-term target of 10,000 by the end of the decade.
• Lower recession odds and strong economic growth (expected 3.5-4% in Q2) suggest the Fed will focus on inflation, potentially leading to a tightening bias in June and a 25bps rate hike in July.
• Gold is currently trading technically, with a rally expected to resume once geopolitical tensions ease, as peace seems to be a bullish factor for gold.
• South Korea's stock market is experiencing 'Market Mania' with investors flooding into memory chip stocks due to the AI boom, which Yardeni finds concerning but acknowledges is currently justified by earnings.

Ed Yardeni attributes the current market rally to 'Fabulous Earnings Momentum' (FEMO), driven by the AI revolution, which he considers more sustainable than FOMO. He maintains a bullish outlook, raising his S&P 500 year-end target and discussing Fed policy, gold, and global market trends.