'This isn't your grandfather's S&P 500': Wall Street strategists say stocks could keep rising from records

Group 1 - Stocks reached record highs following the Federal Reserve's first rate cut of the year, leading to a "honeymoon rally" driven by optimism around financial conditions and the AI boom [1] - Bank of America strategist Michael Hartnett noted that historical equity bubbles have averaged gains of 244% from trough to peak, suggesting that the "Magnificent Seven," which have risen 223% since March 2023, may still have potential for further growth [2] - Jeff Krumpelman from Mariner Wealth Advisors emphasized that AI-driven productivity gains and strong earnings prospects justify higher market multiples, despite the S&P 500's valuation being high by historical standards [3][4] Group 2 - Krumpelman highlighted that the current S&P 500 environment differs significantly from the past, with higher return on equity and profit margins, although he expressed concerns about a potential "melt-up" scenario [4] - Ed Yardeni from Yardeni Research warned that easier monetary policy could lead to a destabilizing rally without addressing structural issues like labor supply shortages, potentially resulting in speculative excess driven by investor FOMO [5] - Emily Roland from John Hancock Investment Management described the current market as unusually favorable yet fragile, indicating a return to a "honeymoon phase" with the Fed's rate cuts [6][7]