The most bullish strategist on Wall Street: The upward trend in US stocks may pause, waiting for earnings reports and other new catalysts.

The earnings season next Friday is an important catalyst for further gains in the US stock market.

In 2023, the strong performance of the US economy combined with expectations of loose monetary policy from the Federal Reserve has driven the S&P 500 index up 24% this year, with an 11% increase in the fourth quarter.

After the significant rise in the US stock market in 2023, companies' earnings reports need to demonstrate strong performance in order to continue meeting the high expectations of the market.

John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, proposed that the US stock market may take a brief pause after experiencing rapid growth until the next potential driving factor, which is the upcoming earnings season for the next quarter. Investors eager to see further gains may not have to wait too long, as US companies will begin reporting their performance next Friday.

In his report, Chief Investment Strategist John Stoltzfus wrote:

"Considering the market's rise from the lows in October to December last year, it seems reasonable to expect a pause, and it is not uncommon."

John Stoltzfus is one of the few strategists who accurately predicted the significant rise in the US benchmark stock index in 2023. He previously predicted that the Federal Reserve would cut interest rates in the second half of 2024 and believed that the technology sector was a worthwhile investment area.

The fourth quarter earnings season will begin on January 12th, which is a crucial moment for the stock market, as companies' financial performance will directly impact their stock prices and market sentiment.

Among them, the release of earnings reports by the banking industry is usually seen as the start of the earnings season and has a significant impact on the market. Large banks, including JPMorgan Chase & Co., will release their earnings reports.

Despite facing high market expectations, Stoltzfus remains optimistic about the improvement of companies' fundamentals and market potential, boldly predicting that the S&P 500 index will reach 5200 points. According to Stoltzfus, after reaching new highs, the stock market will further boost market sentiment and drive the rise of the US stock market.