Morgan Stanley strategist Wilson reiterated his bullish view, expecting the S&P 500 index to rise by 9%.

Morgan Stanley strategists said they still favor a bullish view of the S&P 500 index, believing that with the support of corporate profit recovery and easing policy uncertainty, the index is expected to rise to 7,200 points by mid-next year. The team led by Michael Wilson pointed out that the scope of profit revisions has seen an unprecedented expansion, and the positive operating leverage effect is significantly boosting their non-PMI profit model. They wrote in the report that after experiencing prolonged negative/growth stagnation, the median stock EPS growth rate has now turned positive. However, they warned that the contradiction between lagging soft labor market data and the possibility that Federal Reserve policy responses may not be able to meet the market's demand for speed could bring short-term risks.