US-Iran Truce Boosts Wall Street Optimism Amid Record Buy Ratings

The US and Iran's decision to halt strikes has led to a surge in optimism among Wall Street analysts, with nearly 60% of S&P 500 stocks carrying a Buy rating. This is the highest level on record, according to strategist Charlie Bilello. The mix of record analyst optimism and cooling Middle East risk has reinforced bullish sentiment across US equities and other risk assets, including crypto.

FactSet data shows that Buy ratings have climbed to 59.4% of analyst calls in June, while Hold ratings have slipped to 35.7%, and Sell calls sit at 4.9%, below their five-year average. Such Sell calls are structurally rare, since Wall Street analysts lean toward Buy and Hold.

Bilello framed the optimism as a caution rather than a green light, saying 'When everyone is expecting good news, there's less room for positive surprises.'

The US and Iran agreed to stop all 'kinetic activity,' according to Axios. They will meet Tuesday in Doha to focus on implementing the ceasefire terms, including maritime security measures and a planned military hotline between the U.S. and Iran.