Stock Rally Seen Surviving Fed Rate Hike on Strong Corporate Earnings

Top Wall Street strategists are renewing their bullish views on equities as stronger economic growth enables the market to withstand an increase in interest rates.

Forecasters at banks including Morgan Stanley, JPMorgan Chase & Co., and Goldman Sachs Group Inc. believe any declines driven by expected Federal Reserve tightening will be short-lived due to healthy company profits.

The strategists' renewed optimism comes as the market is bracing for a potential rate hike from the Fed. While higher rates typically lead to lower stock prices, the forecasters expect this time to be different due to robust corporate earnings.