Investors warned: Positive economic data won't boost S&P 500 significantly as stocks already reflect good news

U.S. stock-market investors should not expect positive economic data to significantly push the S&P 500 higher, as the current level of the index already factors in the positive catalysts. While fears of a hard landing, inflation, and a hawkish Fed have not materialized, the gains in stocks are legitimate, but the rally is likely to be exhausted in the near term. Three events that could drive the S&P 500 higher include a sharp fall in Treasury yields, stronger-than-expected earnings, and another round of AI-driven enthusiasm. However, the macro-economic environment is positive, but not risk-less, and the S&P 500 remains vulnerable to earnings disappointments at its current level.