Morgan Stanley: The current sell-off in the US stock market is considered a "healthy correction."

Morgan Stanley strategists stated that last Friday's sell-off in US stocks triggered by position adjustments was a benign pullback. With support from corporate profit growth and resilient economic data, the team remains optimistic about the overall stock market. The team led by Mike Wilson pointed out in a research report that the decline was led by the semiconductor and storage sectors. These sectors have had significant gains so far this year, and the accumulation of risk continues as hedge funds and leveraged exchange-traded funds pile up positions. The team believes that if this bull market wants to continue until the end of the year, market adjustments are inevitable, and in the long run, they are positive. The strategist maintains a target level of 8000 points for the S&P 500 index, about 8% higher than the current level. The team predicts that corporate profits will continue to strengthen, coverage will expand further, and macroeconomic data will continue to support the market.