Morgan Stanley's Wilson Says US Stock Pullback Is Buying Opportunity, Sees S&P 500 Rising From 7,100 to 8,000

U.S. stocks may face a short-term pullback, but investors should use it as a buying opportunity, according to Morgan Stanley. The S&P 500 could rise from around 7,100 to 8,000.

Bloomberg reported on Nov. 2 that Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said in a recent interview that the midterm elections, rising investment in artificial intelligence and tighter market liquidity could increase near-term volatility.

Still, Wilson said such a pullback is more likely to create an investment opportunity than signal the start of a broader downtrend. He sees the S&P 500 advancing from around 7,100 to 8,000.

Wilson also pointed to the market's performance after past U.S. midterm elections as a basis for his optimism. U.S. stocks have repeatedly risen in the six to 12 months after midterm elections, he said. Still, uncertainty over the policy direction of President Donald Trump remains a factor weighing on investor sentiment.

He also dismissed concerns that share supply could rise as major technology companies including Meta, SpaceX and Anthropic pursue large capital raises and initial public offerings, saying the market can absorb them.

Wilson said companies are using the funds they raise to invest in AI infrastructure and other areas, meaning such financing could support industry growth. At the same time, he said the market is responding selectively by demanding higher funding costs from companies with weaker balance sheets.

He added that large-cap blue-chip stocks still have room to grow even as money continues to rotate between stocks and bonds.