Wall Street analysts now rate nearly 60% of S&P 500 stocks as Buy, the highest level on record, amid reduced geopolitical risks.
Analysts have issued Buy ratings for 59.4% of S&P 500 stocks, the highest proportion on record, according to FactSet data. The shift follows an agreement between the US and Iran to halt strikes, easing geopolitical tensions that had weighed on market sentiment.
Hold ratings have declined to 35.7%, while Sell calls stand at 4.9%, below their five-year average. Analysts typically favor Buy and Hold ratings, making Sell calls structurally rare. The data reflects growing optimism but also raises caution about potential overcrowding in bullish positions.
The US and Iran agreed to suspend hostilities, allowing commercial vessels to operate freely while negotiations continue. Talks in Doha will focus on maritime security and establishing a military hotline, further reducing near-term risks for risk assets like equities and crypto.