The U.S. equity market has entered a phase of acceleration few expected so soon after one of the most aggressive tightening cycles in modern history. Despite elevated valuations and persistent global uncertainties, new data suggests that the economic foundations of this bull market are broadening at an unusually fast pace. Corporate earnings are expanding well above their long-term trend, investment into automation and AI is reshaping margins across nearly every sector, and the Federal Reserve appears to be guiding the economy toward a rare soft landing. In this environment, some of Wall Street’s most established institutions — including JPMorgan — now project that the S&P 500 could climb to 7,500 within two years, with 8,000 points becoming a realistic target if the current easing of monetary conditions continues. What once seemed overly optimistic is increasingly supported by structural shifts happening inside the U.S. economy.

Somewhat in contrast to the optimistic outlook is the…