Max Kettner, a multi-asset strategist at HSBC, said the rebound in the economy and the rebound in corporate profits offset the uncertainty of higher interest rates, providing momentum for the S & P 500 to strengthen further, raising his target for the index to 4250 by the end of the year from 4200.

Kettner expects earnings per share in the S & P 500 to climb to $179 this year, higher than the consensus forecast of $174a share.

This is not only driven by a strong rebound in economic activity, which in turn leads to stronger sales, but also by the resilience of US profit margins, which can lead to a rapid rebound in overall earnings.

Economic activity data are expected to recover further in the coming weeks and the stimulus package will eventually be passed by the House of Representatives.

The 21 Wall Street strategists excluding HSBC forecast an average of 4099 points for the S & P 500 by the end of the year.