Morgan Stanley's Wilson: If the S&P 500 pulls back, we will increase holdings in risky assets.

Morgan Stanley said that the S&P 500 index may weaken again, and this could be a buying opportunity. The team of strategists led by Michael Wilson believes that as negotiations stall and central banks focus on inflation risks, the benchmark index may retest the target range of 6300-6500 points in this round of adjustment. The team believes that the earnings environment is strengthening, supporting an optimistic view: the S&P 500's historical earnings growth rate is 15%, and the year-over-year earnings growth rate for the next 12 months is expected to exceed 20%; since the outbreak of the Iran conflict, earnings revisions breadth has remained at 8%, showing resilience. The report also pointed out that since the end of February, earnings expectations for the first quarter of 2026 have been raised by 1%, and second-quarter expectations have been raised by 4%. In terms of energy, the bank believes that the current severe supply shortages are only a temporary phenomenon. Wilson said: "Countries will find ways to address this issue that the global economy cannot afford, just as they did in 2022."