Rising valuations do not hinder Wall Street's optimism on the outlook of the U.S. stock market, saying that a short-term pullback will be a good buying opportunity.

As the US stock market continues to hit record highs, Wall Street strategists are sending a message to investors who are worried about signs of excessive optimism: any short-term pullback could create buying opportunities. Despite growing concerns about the current stock market valuation being too high, strategists from HSBC, Morgan Stanley, and UBS Group are still maintaining a long-term bullish view. They expect strong corporate profits and economic data, clearer tariff policies, and the boost of the artificial intelligence theme to drive the stock market higher next year.