(Reuters) -Oppenheimer Asset Management on Monday raised its year-end target for the S&P 500 index to 7,100, the highest among major Wall Street brokerages, betting on easing trade tensions and strong corporate earnings.

Its current target implies an 11.13% upside to the benchmark index's last close of 6,388.64. Oppenheimer previously set a target of 5,950 for the index.

"With the announcement of trade deals (Japan, EU) by President Trump... we believe that enough 'tariff hurdles' have been overcome for now," Oppenheimer strategists led by John Stoltzfus said in a note.

The U.S. and European Union finalised a trade deal on Sunday, that sets a 15% tariff on most European goods including cars, semiconductors and pharmaceuticals, while the EU pledged to buy $750 billion in U.S. energy and invest $600 billion in the U.S. economy.

Last week, U.S. President Donald Trump struck a $550 billion deal with Japan.

Earlier this month, Goldman Sachs, Bank of America, and RBC Capital Markets also raised their S&P 500 targets

The S&P 500 has rebounded 28.2% since its April 8 low, following Trump's 'Liberation Day' tariffs, broadly driven by cyclical sectors such as technology, industrials and communication services.

Oppenheimer brought back its S&P 500 earnings estimate to $275, which it had originally set in December 2024, having trimmed its projection to $265 in April.

Stoltzfus continues to favor U.S. equities, particularly cyclical stocks, and sees further upside as inflation moderates and expects the Federal Reserve to hold interest rates steady in this week's policy meeting.