Their initial target of 5,200 for the S&P 500 was set out back in 8 December. That comes well before all the recent issues with the Russia-Ukraine conflict, China lockdowns, and surging prices across the globe. As such, one has to think this is a bit of a "late" call by the firm in switching sides and not so much to do with the Fed yesterday.
I mean the reaction by equities to the Fed is that we are perhaps seeing peak hawkishness settle in. A push to 2.00% to 2.50% in the Fed funds rate is very much well telegraphed and something that markets should be able to stomach at this point. And with Powell ruling out 75 bps rate hikes in subsequent meetings, the tightening cycle is being managed somewhat at least in terms of expectations.
The S&P 500 rallied strongly post-FOMC by around 3% yesterday, closing just short of last week's high:
