How Meta’s stock can surge to $1,000, according to the biggest bull on Wall Street

The U.S. stock market is on track to set a record high as it climbs to new all-time highs on Tuesday. Despite economic challenges such as war, high inflation, and bond market pressures, the S&P 500 climbed 0.6% and the Dow Jones Industrial Average rose 0.4%. The Nasdaq composite also hit an all-time high. The soaring stock prices are providing some relief for investors who are feeling discouraged by the rising cost of living.

Many concerns that led to the stock market's bottom in March, including the Iran war, have materialized, with oil prices increasing and bond yields rising, which could slow the economy. However, the main support for the stock market has remained strong: US companies' ability to generate higher profits. Companies like Lamb Weston, which sells frozen fries, and Delta Air Lines have reported better-than-expected profits.

Analysts predict a 30% earnings growth for S&P 500 companies from a year earlier, a third straight quarter of growth exceeding 25%. Additionally, the calming of oil prices has also contributed to the market's upward trajectory, reducing inflation pressure and bringing down the yield on the 10-year Treasury. Within the artificial-intelligence sector, stocks have played a significant role, with Constellation Energy surging 15% due to a long-term deal to supply Google with substantial electricity.