Stocks could see a further 6 percent rise this year, according to market strategist Ed Yardeni.
Yardeni, president of Yardeni Research, has a year-end price target on the S&P 500 ranging from 2,400 up to 2,500. He fixed the target despite the uncertainty about whether President Donald Trump's pro-growth promises will be fulfilled.
"The stock market seems to be tuning out all the noise and [is] kind of focusing on what investors think is the underlying signal coming out of Washington," Yardeni said Thursday on CNBC's "Futures Now." "That is with a Republican president and a Republican Congress, it's very likely that of all the things that the administration has proposed, tax reform, including tax cuts and repatriated earnings, are the most likely programs to get through."
In the "bullish scenario" that sees the president "fast-track tax cuts, tax reform, repatriated earnings and deregulation," "stocks would certainly move to new record highs for a while simply because earnings would rise sharply," Yardeni wrote in a Thursday note.
At the same time, Yardeni acknowledged that Trump's "protectionist language has been of concern," and could ultimately lead to big trouble for stocks.
Still, the good news for the market is that the economy overall has strengthened, meaning that equities are on somewhat firmer ground — particularly given the recent recovery in the oil patch.
"Energy is no longer weighing down on overall corporate earnings, and corporate earnings are doing remarkably well especially in the face of a strong dollar," he said.
U.S. stock futures were lower Friday morning after a five-session run of record closes ended for the S&P 500 and Nasdaq on Thursday. The Dow, however, extended its streak of new highs to six in a row.