Bank of America raised its outlook for the S&P 500 this year, indicating that the change is partially because of the benefits from 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI).

BofA now predicts the index will finish 2023 at 4,600, up from its previous estimate of 4,300, noting that all its key indicators are posting bullish signs.

The bank explained that along with AI, automation, right-sizing labor, and wage inflation incentives contributed to the positive outlook. Strategists also cited that the fourth quarter h🦩as tradition🤡ally provided a seasonal “tailwind” for stocks.

Th𓆏e strategists added t🐬hat if there’s any surprise in the market, its likeliest direction is still positive, although sentiment among investors remains bearish.

BofA said its highest-conviction call was the equal-weighted S&P 500 (SPW) versus the cap-weighted S&P 500 (SPX). It argued the SPW has “superior earnings visibility, lower valuations, less duration risk, and is even more unloved than equities overall.” The bank pointed out that in the last nine “recovery” cycles, the SPW beat the SPX.