Bank of America analysts released a report, expressing firm optimism about the rise of U.S. stocks, and are particularly optimistic about the prospects of large-cap value stocks, cyclical stocks and dividend stocks.

However, analysts maintained the year-end target level of 5,400 points for the S&P 500 index, which indicates a moderate return outlook for the S&P 500 compared to the current point. However, analysts pointed out that large-cap value stocks have greater opportunities in the current market environment, and the overall market sentiment has become more optimistic compared to 2023.

Bank of America disagrees with recent concerns about a recession. They believe that recent economic data reflects more of a normal adjustment of the economy after record highs rather than signs of recession. "Bears are always too pessimistic," the analysts wrote in the report. They further pointed out that key indicators such as default rates, PMI indexes, labor markets and retail sales are all healthy.

It is worth noting that Bank of America emphasized its optimism about large-cap value stocks in the report. Although buyers in the market do not fully agree with this view and prefer expensive growth stocks, Bank of America insists that its U.S. institutional indicators show that it is currently in a "recovery" phase, which is particularly beneficial to value and cyclical stocks. Analysts have observed similar trends in global and European models.

In addition, Bank of America also believes that some technology companies with huge market capitalization can also be regarded as value stocks. Given that these companies have the ability to reduce term risks by returning cash and other means, analysts expect them to become representatives of high value in the future.

In addition to technology stocks, analysts are optimistic about the prospects for recovery in traditional underinvested industries such as energy and finance. They emphasize that these industries are showing new growth rules and huge return potential.

Finally, Bank of America pointed out that rising inflation is prompting companies to refocus on efficiency issues. And advances in artificial intelligence are expected to significantly improve productivity in labor-intensive industries. Therefore, analysts believe that American companies are now in a good position to drive future growth by improving efficiency.