Traders remain cautious despite stock market rally.

Despite several S&P 500 target boosts from prominent Wall Street analysts, only five of the 20 analysts tracked by Fundstrat's Head of Research Tom Lee see upside from the S&P 500's current level near 4,300. Morgan Stanley recently called for a 16% decline in earnings by the end of 2023, and investors are net short S&P 500 futures at their highest level since 2007. However, some strategists are becoming more bullish, with Goldman Sachs cutting its likelihood of recession this year to 25%, and BMO Capital Markets chief investment strategist Brian Belski stating that the AI hype surrounding the tech sector is real and likely to propel future growth for many stocks within the space.