40-year veteran of Wall Street: I've never seen markets go so quickly from euphoria to despair

Key Points
  • Wall Street titan Jeff Saut says the stock market's recent volatility is one for the history books.
  • I've never seen sentiment swing so fast," says Saut, a strategist with more than 40 years experience in the industry.
Expect the S&P to crack 2,750, says chief investment officer

Strategist Jeff Saut, a Wall Street titan with more than 40 years in the industry, said Wednesday the stock market's new-found volatility is one for the history books.

"I've never seen sentiment swing so fast," said Saut, chief investment strategist at Raymond James. "Going from euphoria, basically, at the end of January [to] a 12 percent correction."

Stocks sold off earlier this month after the wage number in January's jobs report saw its biggest jump since the end of the Great Recession to an annualized rate of 2.9 percent, sparking fears of inflation and interest rate hikes. Wall Street bottomed out on Feb. 8, plunging into 10 percent correction territory.

But Saut believes the secular bull market in stocks is still alive and well. Secular bull markets tend to last about 14 years, Saut said. He believes the current bull market started in late 2008. He told CNBC on Wednesday the S&P 500 will crack 2,750. The S&P 500 pulled back 0.6 percent to 2,716.26 on Tuesday.

"I think a lot of bullish sentiment has already been rung out of the market," Saut told "Squawk Box," adding any other stock pullbacks will likely be contained.

Also on "Squawk Box," strategist Michael Tyler said there isn't much headline risk over the next few months that could push the markets lower. He sees the markets retesting January's highs.

"I do think it'll be interesting to see if the market can push through its previous highs," the chief investment officer at Eastern Bank Wealth Management said.

Markets will also look toward the Federal Reserve's meeting minutes, Tyler said. The central bank will release its minutes at 2 p.m. ET Wednesday, with investors focused on gleaning any further insights on inflation.

"I don't think it'll be very interesting, frankly," he said. "I think they're going to take a slightly hawkish tone."

U.S. stock futures were lower on Wednesday. The Dow and S&P 500 saw six-day win streaks end Tuesday, with the Dow posting 2018's fifth decline of at least 1 percent. The three major averages remain on track for their biggest monthly declines since January 2016.