Ed Yardeni, president of Yardeni Research Inc. and one of Wall Street's biggest bulls, cut his year-end S&P 500 target to 7,900 from 8,400, citing downturn risks in the next three to six months.

The new target implies a 4.1% gain from Tuesday's close and falls mid-pack in a Bloomberg survey of over 20 strategists. Yardeni lowered his forward P/E estimate from 19.8 to 18.6 due to rising bond yields. He had raised his target to 8,400 from 8,250 in August amid "fabulous" earnings momentum.

Yardeni is the second strategist this week to cut his view, following Wells Fargo & Co.'s Ohsung Kwon, who lowered his target to 7,700 from 7,950. Others boosted outlooks, including Bank of America Corp.'s Savita Subramanian and Tallbacken Capital Advisors' Michael Purves, whose 8,500 target is now a Street high.

Yardeni still expects the economy to grow without recession through decade's end, maintaining his 10,000 target. The previous 8,400 forecast is now a mid-2027 target, with his 2027 EPS estimate of $425 unchanged. Markets await the Federal Reserve's rate decision as Chairman Kevin Warsh vows to control inflation.