The S&P 500 (^GSPC) closed at 5,554 in Wednesday's trading session after rebounding from its morning lows. B. Riley Wealth chief market strategist Art Hogan joins Market Domination Overtime to discuss the index's outlook and how investors can best position their portfolios ahead of the Federal Reserve's interest rate cuts.

Hogan's year-end target for the S&P 500 is 5,700. He believes this is "an attainable goal" given the earnings beat ratio during the first two quarters of 2024.

He adds, "I clearly think the path of least resistance for this market continues to be higher. If you look at earnings estimates for the next two quarters, they're low double digits, and we typically are conservative with those, so we'll likely do better than that. GDP is tracking at 2.5%, according to the Atlanta Fed, and we had a 3% GDP growth rate in the last quarter. So while the economy is slowing a bit, we're still seeing an economy that's growing above trend and driving earnings growth."

While the technology sector has largely contributed to the growth of the index in the first half of 2024, Hogan believes there will be more participation from players outside of the "Magnificent Seven." He expects that these companies will grow earnings at a faster pace than they has over the last 18 months, and notes that tech will continue to be "a core investment."

As the Federal Reserve begins cutting interest rates, Hogan believes that small caps will likely benefit. "They're more dependent on interest rates as they're more dependent on debt. So as that comes down, that's a headwind that's turning into a tailwind right in front of us," he explains. Coupled with GDP growth, small caps are likely to receive a boost, Hogan adds.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Melanie Riehl