Melt-Up on the Mind as U.S. Stock Gains Near Euphoric Levels
U.S. stocks took the stairs during the six-month slog back from February’s market correction. Signs are mounting that investors expect them to ride the elevator even higher.
The S&P 500 Index, which was up 0.1 percent as of 9:51 a.m. in New York, has rallied 3 percent in the past two weeks alone, reaching an all-time high and popping above 2,900 for the first time. The surge has taken it within a whisker of overbought territory — harking back to January when market euphoria pushed global equities into technically stretched waters, and then a violent correction.
Market strategists don’t expect a repeat. Wall Street’s biggest cohort of bulls has ratcheted up estimates for where stocks end the year, with Barclays and Weeden & Co. now expecting the S&P 500 to hit 3,000 — 3.5 percent higher than Tuesday’s close. That’d give the equity benchmark a 12 percent gain for the year.
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