The S 500 index had a strong first half of 2023 and has gained over 17.5% so far this year -- mainly driven by an artificial intelligence-fueled stock rally and easing inflation. The U.S. economy has also proved resilient and posted an unexpected 2.4% year-over-year growth rate in the second quarter, driven by a 7.7% year-over-year jump in business investment (excluding housing).

Against this backdrop, several analysts believe (with varying degrees of caution and optimism) that Wall Street now may be in the early stages of a bull market, especially since the S 500 has rallied by more than 20% from its October 2022 low.

Investors looking to capitalize on the momentum of this bull rally should consider opening small positions in two AI stocks: Palantir (NYSE: PLTR) and (NASDAQ: GOOG) (NASDAQ: GOOGL). Here's why.  

Continue reading

Source Fool.com