Morgan Stanley Says S&P 500 Correction Near Final Stage, Sees Year-End Rebound
Summary
- Morgan Stanley said the correction in U.S. equities is nearing its final stage and could lead to a rebound by year-end.
- Mike Wilson said the S&P 500 index could fall to the 7,100 to 7,300 range before forming a bottom, while maintaining a year-end target of 8,000.
- Morgan Stanley recommended watching for further market moves rather than immediately buying the dip, citing broad weakness across the market and concerns over funding for artificial intelligence (AI) infrastructure investment.
Forecast Trend Report by Period
Morgan Stanley said the correction in U.S. equities is nearing its final stage and could be followed by a rebound by year-end. Still, it advised caution on buying the dip as broader market weakness persists.
Walter Bloomberg reported on November 9 that Mike Wilson, Morgan Stanley's chief U.S. equity strategist, sees the recent stock-market pullback entering its final phase.
Wilson expects the S&P 500 to fall to the 7,100 to 7,300 range before establishing a bottom. He maintained his year-end target of 8,000.
Morgan Stanley recommended that investors watch for further market moves rather than immediately buy the dip. The firm cited a rising number of declining stocks across the market and continued concerns over funding for artificial intelligence infrastructure investment.
JH Kim
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