Morgan Stanley: US Stocks Must Clear Three Major Hurdles Before Next Rally

on October 28, Morgan Stanley analyst Mike Wilson believes the US stock market correction that began in June is entering its final stage, but the S&P 500 index may still need to pull back to the 7,100 to 7,200 range before it can spark a more sustained rally.

Wilson noted that the market faces three key hurdles ahead: absorbing the financing supply in the artificial intelligence sector, eliminating political and geopolitical uncertainties tied to the US midterm elections, and awaiting a potential shift in the liquidity environment. Morgan Stanley continues to maintain its optimistic year-end target of 8,000 for the S&P 500, but Wilson stated he would like to see market sentiment turn further toward panic selling and clearer signs of stabilization in the semiconductor sector before considering taking on more risk. (Jin10)