- The VOO stock price jumped to a record high this week.
- Wall Street analysts have boosted their estimates for the S&P 500 Index.
- Technicals suggest that it has more upside in the near term.
The Vanguard S&P 500 Index ETF ( VOO) continued its strong rally this week, hitting a new record high, as the US-Iran deal hopes rose and as top Wall Street banks boosted their targets amid the AI boom. It jumped to $695, up by over 20% from its lowest point in March, officially entering a bull market.
AI Boom and US-Iran Deal Fuel Inflows
The VOO ETF, which has become the biggest fund in the world, has continued to attract record inflows this year. It has gained $60 billion in assets, giving it over $980 billuon in assets. This means that it will soon cross the $1 trillion mark in the coming days.
The surge has been fueled by the ongoing optimism that the US and Iran will reach a deal and reopen the vital Strait of Hormuz soon. This optimism has also pushed crude oil prices lower, with Brent and the West Texas Intermediate (WTI) falling to $91 and $87, respectively.
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Wall Street has also been thrilled by the ongoing AI boom that has pushed the number of companies worth over $1 trillion to 15. Only a handful of them like Berkshire Hathaway, Eli Lilly, and Saudi Aramco are not in the club. And soon, companies like AMD, ASML, and Intel will get to the $1 trillion club if the trend continues.
Top analysts have pushed their S&P 500 Index forecasts higher. For example, Deutsche Bank has boosted its target to $8,000, while Morgan Stanley and Wells Fargo have hiked it to $7,800. RBC Capital Markets predicts that the index will jump to $7.900, while Goldman Sachs and Citigroup see it rising to over $7,600.
There are reasons to predict more gains. For one, companies are reporting record earnings this year, with the average S&P 500 Index growth being 28%. This growth was the fastest one since the fourth quarter of 2021.
The index is also trading at a good valuation. Its forward price-to-earnings ratio stands at 22, slightly higher than the five-year average of 18. Indeed, some of the best-performing companies in the index like NVIDIA and Sandisk are also trading at bargain prices.
This growth explains why demand for crypto ETFs is fading. Spot Bitcoin ETFs have shed over $2 billion this month, while Ethereum funds have shed over $2 billion this year.
VOO ETF Stock Price Technical Analysis
The daily chart reveals that the VOO stock price has been in a strong bull run this month and is now trading at a record high. It recently soared above the key resistance level at $641, its highest point in January this year.
The fund constantly remains above the 50-day and 100-day Exponential Moving Average (EMA). It has remained above the Ichimoku cloud and the Supertrend indicators.
Therefore, the fund will likely continue rising in the near term, potentially to the key resistance level at $800. It will likely get to $1,000 in the coming years if the AI boom continues.
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