S&P 500 Optimism Hits Unprecedented Levels Amid Record Highs

The S&P 500 has hit multiple record highs this year and Wall Street's optimism is at an all-time high. According to Charlie Bilello, Chief Market Strategist at Creative Planning, nearly 60% of the index's stocks are now rated 'Buy' by analysts, a record level.

The top constituents of the S&P 500 also have a majority of analysts with a 'Buy' or higher rating. Nvidia, Apple, Microsoft, Amazon, and Alphabet all have more than half their analysts predicting a price increase.

Several major Wall Street firms have raised their year-end targets for the S&P 500 in recent days. JPMorgan has set a target of 7,800, implying roughly a 6% upside from current levels. Barclays and Stifel also raised their year-end targets to 7,800 this week.

Bilello notes that the higher targets and growing optimism mean the upside is already priced in. When everyone expects good news, there's less room for positive surprises.