S&P 500 set to rebound with 8,000 target despite rising rates, driven by strong earnings growth.

The S&P 500 is expected to reach 8,000 by year-end despite concerns over rising interest rates. Historical trends show the index typically rebounds 6-12 months after Federal Reserve rate hikes, with an average gain of 12.5% following a 25 basis point increase. The current S&P 500 PEG ratio is at a 30-year low, indicating attractive valuations relative to earnings growth. Earnings remain the key driver, with Q3 earnings per share projected to increase 28.5% year-over-year, supporting market optimism.