Wall Street strategists aren't relying on AI to drive the stock market rally anymore: Morning Brief

Published On Nov 19, 2024, 6:00 AM

Wall Street strategists are becoming less reliant on artificial intelligence (AI) as a driving force for stock market growth, shifting focus back to broader economic fundamentals. Recent forecasts predict continued rallies in the S&P 500, with year-end targets of 6,700 from BMO Capital Markets and 6,500 from Morgan Stanley. They expect a broadening of earnings growth and a potential easing of interest rates, leading to healthy market performance without the previous overemphasis on AI. This indicates a mature phase of the bull market where smaller gains in smaller companies can still lead to positive index performance, albeit not as high as the past two years where the market was heavily AI-influenced.