Zero Fed Rate Hikes Baked Into S&P Forecast, Says Wells Fargo's Cronk

• Fed unlikely to achieve 2-2.5% inflation target; any rate hikes this year would be symbolic.
• Wells Fargo's S&P 500 year-end target of 7,900 assumes zero Fed rate hikes.
• Current market dynamics are a 'rotation within equities,' not a sell-off, with financials favored and small caps disliked.

Darrell Cronk of Wells Fargo Wealth and Investment Management believes the Fed will struggle to hit its 2% inflation target and forecasts zero meaningful rate hikes this year. Their S&P 500 year-end target of 7,900 is predicated on this, viewing the recent tech 'sell-off' as a rotation within equities, favoring financials over small caps.