US bull market to continue into 2018

Analysts remain bullish on the US stock market.

Bank of America Merrill Lynch sees the current bull market continuing into 2018.

In a report to clients, Michael Hartnett, chief investment strategist at BofAML, said that he expected “full investor capitulation into risk assets” on better-than-expected corporate earnings, pushing the S&P 500 to a peak of around 2,863 next year.

Similarly, Goldman Sachs sees the the S&P 500 closing next year at 2,850.

“Our 'rational exuberance' rests on a combination of above-trend US and global economic growth, low albeit slowly rising interest rates, and profit growth aided by corporate tax reform likely to be adopted by early next year,” wrote David Kostin in a report to clients.