Morgan Stanley’s Michael Wilson signals a potential turning point for the S&P 500 as market turbulence may be nearing its end.
Michael Wilson of Morgan Stanley stated:
"We think we’re closer to the end of this rolling correction than the beginning."
Wilson remains "constructive over the next 6–12 months" as earnings growth reaccelerates and market breadth improves. He highlighted that U.S. equities outperform globally due to a "modest energy surplus," while software stocks have risen during geopolitical volatility, citing "durable moats across data, workflows, and distribution."
Risks include oil prices above $100/barrel persisting and the Federal Reserve not cutting rates. Sectors favored for positioning include Financials, Industrials, Consumer Discretionary, and Small Caps.
Look, the interplay between oil prices and Fed policy isn’t just a technical detail—it’s a fulcrum for sector rotation. If energy costs stabilize and rate cuts materialize, the rally in Financials and Industrials could gain legs, but the clock is ticking on the $100/barrel threshold.
Source: Investing
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