(Bloomberg) — There’s no stopping the record-breaking rally in US stocks against the backdrop of an improving outlook for corporate earnings and the frenzy around artificial intelligence, according to Societe Generale SA strategists.
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The team led by Manish Kabra boosted its year-end target for the S&P 500 Index to 5,500 points from 4,750 — the highest forecast among strategists tracked by Bloomberg. The new target implies gains of more than 5% from current levels.
“US exceptionalism is going from strength to strength,” Kabra wrote in a note. “Despite widespread market optimism, we view this as rational rather than excessive, as profit growth continues to increase and set new records for the S&P 500.”
The S&P 500 has rallied 20% since a team including Kabra recommended buying US stocks in November.
US stocks have scaled new highs this year — with the S&P 500 notching an all-time peak 20 times since…
