Catenaa, Monday, November 24, 2025- US stock markets are likely nearing the end of the recent selloff, according to a Morgan Stanley Strategist, as the outlook is bullish for 2026.
Morgan Stanley Strategist Michael Wilson said on a note on Monday that the bank views “any further weakness in the short-term as an opportunity to add long exposure into next year.”
The team is bullish on consumer discretionary, healthcare, financials, industrial, and small-cap stocks.
The strategists expect the S&P 500 to rally to 7,800 a year from now, making it among the highest predictions among other Wall Street firms tracked by Bloomberg. The forecast implies about an 18% rally from current levels and a sharp rebound from the current pullback.
The S&P 500 Index has lost about 4% from its October highs amid concerns over rich technology valuations. “The weakness under the hood is a sign that we’re closer to the end of this correction than the beginning,” Wilson wrote, adding that further volatility can’t be ruled out in the short term.
Wilson said the Federal Reserve will eventually deliver interest rate cuts that will prop up the stock market, and sees artificial intelligence driving efficiency gains.
He’s among the rare forecasters who held on to his bullish view in April, even as stocks sank in the aftermath of sweeping US tariffs. The conviction proved correct, with the S&P 500 rebounding to a record in the following months.
