After record-breaking run, S&P 500 could rally even higher

The S&P 500 rose 0.8 percent last week, its fifth consecutive weekly gain, and ending on a record high.

Many analysts see further gains for the S&P 500.

Barry Bannister, head of institutional equity strategy at Stifel, sees the rally in stocks lasting until next year.

“The Federal Reserve, by shrinking its balance sheet, and the White House, by pursuing a trade war, skated very close to the edge of the ice and risked a recession. Both are backing off and that’s positive for global sentiment,” said Bannister.

Michael Santoli at CNBC said that the “weight of the evidence points in the more positive direction, based on the global scope of the rally, the cyclical sectors leading the way and the rapid repricing of bonds that have yields emerging from historic depths toward more normal but still unthreatening levels”.

Bill Stone, chief investment officer and managing director at Avalon Investment & Advisory, told CNBC that the major stock indices are likely to rally to even higher highs.

“[R]otation has kicked in. We’ve gotten much more of the cyclical names, the value names, acting better. I think that can help take us to new highs,” he said.