Wall Street strategists, including those at Morgan Stanley and Goldman Sachs, are increasingly optimistic about US stocks, citing resilient economic growth and a sharp improvement in Corporate America's earnings outlook. Morgan Stanley's Chief Equity Strategist Mike Wilson has reiterated a 12-month S&P 500 price target of 6,500, which represents an 8% gain from current levels. The S&P 500 is currently trading around 6,010, about 2% below its record high, and has rebounded by 20% from its April lows. Wilson highlighted that the sharp drawdown in April marked the end of a prolonged correction, and pointed to an improvement in earnings revision breadth, now at -10%, as a positive indicator. Barclays' Alexander Altmann reported that institutional investors remain underexposed to equities, but may increase allocations if the rally continues. Deutsche Bank data shows global equity positioning has only been lower 23% of the time since 2010. Goldman Sachs' chief US equity strategist David Kostin projects the S&P 500 will reach 6,500 in the next 12 months, noting that returns are currently more correlated with improving 'soft data'—such as consumer surveys—than with 'hard data' like job reports. Recent economic data includes ADP reporting 37,000 private sector jobs added in May, the lowest in over two years, and unemployment claims reaching their highest level since October 2024. Nonfarm payroll revisions revealed 95,000 fewer jobs added in March and April than initially reported. JPMorgan, led by Dubravko Lakos-Bujas, and Citigroup have also raised their year-end targets for the S&P 500, while Barclays maintains a strong long position in US equities. The S&P 500's rapid recovery from April's lows is described as a V-shaped rebound, with much of the advance driven by retail investors. Institutional investors' cautious stance may shift if equities continue to climb. The market has largely priced in the impact of tariffs after President Donald Trump paused some of the highest tariffs in April. Morgan Stanley's CEO has reported an uptick in dealmaking and capital markets activity, and recent transactions are performing strongly. Analysts note that while trade-related uncertainty and a cooling labor market remain risks, improving earnings outlooks and positive sentiment among strategists are supporting the case for further gains in US equities.