The 2 reasons this strategist sees the S&P 500 hitting 6,600

The strategist at Barclays anticipates the S&P 500 to reach 6,600 by 2025, driven by a strong virtuous cycle between income, employment, and consumption, along with the technology sector's outperformance. While the market anticipates a convergence in earnings growth between technology and other sectors, the strategist believes this convergence will occur at a much slower pace, with large-cap technology continuing to outperform.

Strong Economy & Consumer Spending

• 00:00:15 The strategist believes the economy is performing well, with a robust virtuous cycle between income, employment, and consumption. Consumer balance sheets are in excellent condition, contributing to a positive market outlook. This strong foundation supports a constructive market view for the coming year.

Technology Sector Outperformance

• 00:01:23 The market consistently underestimates the earnings power of big tech, while overestimating the earnings power of the rest of the S&P 500. The strategist highlights that tech earnings are growing at a faster rate than anticipated, while the rest of the market's earnings growth is decelerating at a slower pace than expected. This suggests that the anticipated convergence in earnings growth between tech and the rest of the market will be delayed, with big tech remaining the market's fulcrum.