Wells Fargo argued for a higher year-end target for the S&P 500 (SP500) but noted a challenging backdrop with the U.S. 10 Year Treasury yield (US10Y) remaining elevated along with current market valuations.

“Fed accommodation and Tuesday's election results are bullish, and this week we raised our year-end SPX target to 5830. But with the 10yr UST at 4.4%, the SPX's valuation (21.9x/19.7x consensus 2025E/26E EPS) is challenging,” Wells Fargo's equity research team said on Friday.

At the moment the S&P 500 (SP500) trades at 5,973 points and is just 0.5% away from topping 6,000 for the first time in history. Furthermore, while Wells Fargo upped its year-end target, it is still lower than the current price of the index. To match the Wells Fargo equity research team’s call, the gauge would need to come down 2.3% from its current level.

On the US10Y front, the yield hovers near 4.32% and is higher by 53 basis points since the start of October. Also since October 1, the US10Y has climbed above its 50-, 100-, and 200-day moving averages.

For traders and investors wanting to monitor the broader S&P 500 (SP500) more closely, here are some exchange-traded funds and mutual funds that can serve as a proxy investment for the benchmark index: (NYSEARCA:SPY), (VOO), (IVV), (SSO), (RSP), (UPRO), (SH), (SDS), (SPXU), (FXAIX), (VFIAX), and (VFFSX).