MORGAN STANLEY SEES POST-ELECTION MARKET REBOUND

Morgan Stanley's Michael Wilson expects the current equity correction to end as several major risks clear, including the U.S. midterm elections.

S&P 500 targets:
🔸 Near-term downside: 7,100–7,200
🔸 Year-end base case: 8,000

Wilson identifies three catalysts: AI financing concerns, midterm elections and tightening financial conditions.

The key takeaway: Liquidity remains the biggest near-term risk, but a potential Fed pivot could trigger a market rebound. Morgan Stanley notes that midterm elections have historically been followed by strong 6–12-month equity returns.

Related tickers: $SPY , $QQQ , $IWM , $TLT

Source: Morgan Stanley — Michael Wilson