The economy is stronger than people thought and there's no recession in 2023, says Invesco's Brian Levitt

• Wall Street's fears of recession have scaled back in recent weeks after a succession of robust economic data.
• "This is an economy that's stronger than people thought," Invesco strategist Brian Levitt told CNBC Tuesday.

Recession fears on Wall Street have cooled recently, after a series of robust economic data releases.

Second-quarter company earnings have been strong, and investors think the Federal Reserve might be done with its interest-rate hikes for the time being, with inflation rapidly cooling.

That good news has lifted S&P 500 close to an all-time high, with the benchmark stock-market index up 17% year-to-date and 9% over the past three months alone.

Brian Levitt is upbeat on the US's economic prospects – and believes the rally that's lifted equities in 2023 still has room to run.

"My expectation on what the market is telling us is that this is an economy that's stronger than people thought," Invesco's global market strategist told CNBC on Tuesday.

"There's no recession in 2023, the Fed's getting closer to being done if not already done, and that suggests a market that moves higher from here," Levit added.

He also referenced another phenomenon that has powered stocks higher this year: "FOMO", or fear of missing out.

"I would think it's a FOMO rally between here and the end of the year," Levitt said. "And a lot of investors have missed it, there's a lot of money on the sideline, and I would expect more of that to find its way into the market."

Fear of missing out has led to some of Wall Street's most bearish voices scaling back their pessimistic predictions in recent weeks.

"We were wrong," Morgan Stanley's Mike Wilson said in a research note last month – a surprise admission of fallibility by a strategist who's long been one of the most downbeat voices on the market.