Morgan Stanley: U.S. Stocks Still Need to Clear Three Major Hurdles Before the Next Rally

According to TechFlow, on October 28, Morgan Stanley analyst Mike Wilson believes that the U.S. stock pullback that began in June is entering its final stage, but the S&P 500 may still need to pull back to the 7100 to 7200 point range before a more sustainable rally can begin.

Wilson believes the market must next clear three major hurdles: absorbing the financing supply in the AI sector, eliminating political and geopolitical uncertainty surrounding the U.S. midterm elections, and waiting for a possible turning point in the liquidity environment. Morgan Stanley still maintains its optimistic year-end target of 8000 points for the S&P 500, but Wilson wants to first see market sentiment shift further toward panic selling and clearer signs of stabilization in the semiconductor sector before considering taking on more risk. (Jin10)

Source: TechFlow