After notching another all-time high earlier this month, the S 500 index has been taking a breather. The widely followed benchmark index -- composed of 500 of the largest U.S. companies -- has hit new highs 38 times thus far in 2024, so it's earned a break.

Some investors believe this pause could be a sign the rally is on its last legs, but others on Wall Street are unconcerned. Among the bulls is XM Investment analyst Marios Hadjikyriacos. "Stock markets are enjoying the best of all worlds, buoyed by a resilient U.S. economy and speculation that Fed rate cuts are just around the corner, helping to justify stretched valuations," he wrote.

UBS analyst Mark Haefele is equally optimistic. "All-time highs often generate investor concern that markets have peaked. Such worries are not supported by history," he wrote in a note to investors.

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Source Fool.com