Analysts offered mixed signals on the S&P 500’s near-term outlook, making a Santa rally uncertain, pointing to potential volatility, amid atypical seasonality and rising bearish options sentiment.

Analysts See Volatility Even As Yardeni Eyes S&P At 7,000

However, RBC's Amy Wu Silverman told Yahoo Finance on Monday that markets have not followed typical seasonal patterns this year, making a traditional Santa rally uncertain. She noted rising bearish sentiment in the options market, with investors increasingly buying downside protection instead of relying on usual year-end strength, suggesting the likelihood of another bout of volatility.

Meanwhile, Omar Aguilar, CEO and CIO of Schwab Asset Management, warned of growing underlying risks, noting significant discrepancies in recent post-shutdown economic data and early signs of sector rotation.

Aguilar said that "the opportunities for a catalyst” that will drive the market up did not seem to be very strong this time.

However, market veteran Ed Yardeni of Yardeni Research had predicted that the S&P 500 could hit 7,000 by the end of the year. crossing the record high of 6,920. Later, ...