Bank of America strategists say economic growth expectations have surged, and global stock markets may rise further

Michael Hartnett of Bank of America stated that global stock markets may rise further as the surge in economic growth expectations has given bulls a firm grip on the situation. The bank's latest survey shows that a net 28% of global fund managers are overweight in stocks, the highest level in seven months. Hartnett noted that there has been the most significant improvement in views on economic growth in nearly a year, with only a net 16% of investors expecting the economy to weaken. The strategist wrote in a report that as the risks of a "recessionary trade war" diminish, "bulls are everywhere." He added that stock market exposure has not yet reached extreme levels, which is currently favorable for sustaining the upward trend. With renewed enthusiasm for artificial intelligence driving tech giants higher, and the impact of large-scale tariffs in the U.S. being less than expected so far, the MSCI Global Index has reached an all-time high. Investors are also betting that the Federal Reserve will begin cutting interest rates in a timely manner to avoid an economic downturn