Morgan Stanley CIO Says S&P 500 Targeting All-Time High by End of Year – Here’s Why

Morgan Stanley’s chief funding officer (CIO) says the S&P 500 probably has extra upside forward.

In a brand new Bloomberg interview, Mike Wilson says the index might rally by practically 14% from the present degree by the top of the yr.

In keeping with Wilson, two catalysts might set off the rally, with the primary one being capital expenditure within the synthetic intelligence (AI) sector.

“I feel we now have a brand new Fed chair nominee with Kevin Warsh… We expect as soon as he takes workplace, we expect that might be one other catalyst for why the market can have a extremely good second half.

And we stand by our 7,800 goal for the S&P by the top of this yr.”

Wilson says the inventory market can also be going to profit from a broader distribution of financial development.

“So we’re truly not solely in a brand new incomes cycle, we’re in a brand new financial cycle. And that’s why we’re seeing the broadening out now, as a result of there have been many components of the financial system which were form of mired in a recession for the final three years or so. And so they’re simply now beginning to emerge.

Areas like shopper items. A few of the monetary sector. Industrials clearly have been simply getting a lift from AI capital expenditure, but additionally getting a lift from principally underspending for the final a number of years. Components of expertise are nonetheless doing fairly effectively. And in order that broadening out, that’s the actual story.”

The S&P 500 stands at 6,837 factors at time of writing.

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