The S&P 500 continued its strong run Thursday, topping the 3,200 level for the first time, but one major strategist said the market may be going too far.

Jack Manley, global market strategist for JP Morgan Asset Management, said in the Market Zone on CNBC’s “Closing Bell” that investors may be too optimistic about recent developments in the trade negotiations between the United States and China and the elections in the United Kingdom.

“I think it is safe to say that the worse is probably behind us, but these are one steps in a large, multi-step process. There’s a whole lot more to do out there, and I do think markets are at risk of being a little too optimistic,” Manley said.

One positive for the market was Treasury Secretary Steve Mnuchin’s comments on Thursday that he is “very confident” the phase one trade deal with China will be signed next month, Manley said.

“I think this is really good news because for the first time in a long time we’re actually seeing concrete evidence of progress being made,” Manley said.

Here were other stories that were driving the market at the close:

  • IAC announced that it is spinning off its stake in Match. Shares of both companies rose more than 7% on Thursday. “It’s kind of what you get when you buy IAC. It incubates these concepts, they grow, they take them public, they spin them out,” said Michael Santoli, CNBC’s senior markets commentator.
  • Moody’s cut its rating of Boeing’s debt, but the aerospace manufacturer saw its stock rise just under 1% on Thursday. The rate cut comes on the heels of a phone call between Boeing chief executive officer Dennis Muilenburg and President Donald Trump and the company’s decisions to suspend production of the grounded 737 Max airplane.

“I do think the CEO will keep his job, at least until they get the certification and they get these planes up and running,” said Stephanie Link, head of active equity research at Nuveen. “And that’s the biggest question mark. When they do (get the Max re-certified), everyone will breathe a sigh of relief and that’s when the stock I think can do well.”

Read More