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After the 40% surge in the US stocks, including the S&P 500 index, analysts believe that there still two bullish factors that could likely drive the stocks higher.

Key quotes

The two biggest stories facing investors appear to be in direct conflict: the US unemployment rate is at its highest level since the Great Depression, and the stock market is up about 40% from its recent bear market low.

When the US labor market goes from losing jobs to adding them, there is no looking back.

“[P]erspective is always important.”

“The average bull market has historically lasted five years, with returns exceeding 200%. The first 48 trading days typically make up just over 10% of the returns for the entire bull market.”

“So if this is truly a lasting bull market, then we should have plenty more years of attractive returns ahead of us.”

“The prospect of a tumbling unemployment rate is surely good news for stocks.”

“The question then is how much this 40% rally already accounts for an improving economy and a falling unemployment rate.”

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