One of the "top strategists" in the eyes of investors predicts that the S&P 500 index will rise by 16% in the next year.

Morgan Stanley strategist Michael Wilson predicts that strong corporate earnings will support a 16% rise in the S&P 500 index over the next year, making him one of the most optimistic voices in the US stock market. The chief US stock strategist at Morgan Stanley expects the benchmark index to reach around 7800 by the end of 2026. This is one of the highest target points tracked by Bloomberg for strategists. This level would mean the index achieving double-digit growth for the fourth consecutive year. Wilson wrote in a report, "We are in a new bull market and earnings cycle, especially for many lagging sectors in the index." Wilson forecasts that earnings per share for companies in the S&P 500 index will increase by 17% and 12% in the next two years. Factors he mentioned driving this include improved pricing power for companies, increased efficiency from artificial intelligence, loose tax and regulatory policies, and stable interest rates.