Morgan Stanley’s chief investment officer (CIO) says the S&P 500 likely has more upside ahead.
In a new Bloomberg interview, Mike Wilson says the index could rally by nearly 14% from the current level by the end of the year.
According to Wilson, two catalysts could trigger the rally, with the first one being capital expenditure in the artificial intelligence (AI) sector.
“I think we have a new Fed chair nominee with Kevin Warsh… We think once he takes office, we think that will be another catalyst for why the market can have a really good second half.
And we stand by our 7,800 target for the S&P by the end of this year.”
Wilson says the stock market is also going to benefit from a broader distribution of economic growth.
“So we’re actually not only in a new earning cycle, we’re in a new economic cycle. And that’s why we’re seeing the broadening out now, because there have been many parts of the economy that have been sort of mired in a recession for the last three years or so. And they’re just now starting to emerge.
Areas like consumer goods. Some of the financial sector. Industrials obviously were just getting a boost from AI capital expenditure, but also getting a boost from basically underspending for the last several years. Parts of technology are still doing quite well. And so that broadening out, that is the real story.”
The S&P 500 stands at 6,837 points at time of writing.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
