According to Morgan Stanley strategists, the US stock market is facing a “bullish pattern” in view of improved profit expectations and expectations of interest rate cuts from the Federal Reserve. “We expect strong corporate profits by 2026, and the Federal Reserve will cut interest rates based on lagging or mild weakness in the labor market,” the team led by Michael Wilson wrote in the report. The agency expects the US non-essential consumer goods sector and small-cap stocks to continue to outperform.

According to Morgan Stanley strategists, the US stock market is facing a “bullish pattern” in view of improved profit expectations and expectations of interest rate cuts from the Federal Reserve. “We expect strong corporate profits by 2026, and the Federal Reserve will cut interest rates based on lagging or mild weakness in the labor market,” the team led by Michael Wilson wrote in the report. The agency expects the US non-essential consumer goods sector and small-cap stocks to continue to outperform.