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A Wall Street sign is seen near the New York Stock Exchange (NYSE) in the financial district in New York, November 24, 2020.

Brendan McDermid | Reuters

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We’re just seven days into the New Year, and Credit Suisse is already raising its forecast based on supportive Democratic policies and pent up demand once things return to normal from Covid.

On Thursday the firm, led by chief U.S. equity strategist Jonathan Golub, lifted its 2021 S&P 500 target from 4,050 to 4,200, representing a 12% upside from where the benchmark index closed on Wednesday. The firm upgraded pro-cyclical sectors, arguing that they will be the ones to drive the market higher.