Stocks surged to fresh record highs this week as the Federal Reserve delivered its first rate cut of the year, fueling what some strategists describe as a short-term "honeymoon rally." Optimism around easier financial conditions and the artificial intelligence boom has powered equities higher, defying September's reputation as a weak month for stocks. Bank of America strategist Michael Hartnett said in a note to clients that if this is a bubble, it may not be ready to burst. His team studied more than a ...

Michael Nagle / Bloomberg via Getty Images The Magnificent Seven stocks have risen about 60% since early April. Key Takeaways According to a recent note from Bank of America strategists, the Magnificent Seven stocks, despite their massive run-up over the past few years, have yet to reach the levels that historically have signaled peak bubble. The Mag 7 has rallied about 60% from its low point this year in early April, boosted by AI optimism, healthy earnings, and anticipation of lower interest rates. ...