Options traders expect the S&P 500 index to hover around 7000 points by the end of the year.

[Options traders expect the S&P 500 index to hover around 7,000 points by the end of the year] The U.S. stock market has once again shown impressive performance this year, but from the perspective of the derivatives market, the momentum may be limited. Options bets on the S&P 500 index by the end of December are concentrated around 7,000 points. If this integer point is reached, it would mean a 19% rise for the index by 2025. However, this leaves only a 2.5% margin from Thursday's closing of 6,822.34 points, with two months remaining this year. Although Wall Street remains generally optimistic about the outlook for U.S. stocks, there are still cautious reasons. Fed Chairman Powell stated that a third rate cut is far from certain. Additionally, earnings reports from tech giants have raised concerns about the outlook for artificial intelligence spending. Signs of an economic slowdown are beginning to emerge, and cracks are starting to appear in the higher-risk segments of the credit market, which raises questions about the health of U.S. consumers. Furthermore, most of the S&P 500 index's gains are contributed by a few stocks, which is concerning; if these weighted stocks weaken, the market may come under pressure. Some strategists have begun to downgrade their optimistic expectations following Powell's speech on Wednesday, despite the fact that the last two months of the year typically have strong seasonal trends. Another more common explanation is that investors often concentrate on building positions near integer points. Gateway Investment Advisors strategist Ferrara stated, “The 7,000 point strike price is a very popular psychological barrier.” ( Jin10 )