Original title: Morgan Stanley’s Wilson Says US Stock Rally Has Further to Run
US stocks will continue rallying after four months of gains as Federal Reserve interest rate cuts coincide with robust corporate earnings, according to Morgan Stanley’s Michael Wilson . The strategist, who correctly predicted a rebound from April’s selloff, said the economy was heading into an “early cycle backdrop,” where nominal earnings continue to pick up alongside a drop in borrowing costs. Moreover, rate-sensitive stocks such as small caps have underperformed this year, suggesting room for catch up, he added.