According to BlockBeats, Morgan Stanley's Chief Investment Officer Mike Wilson believes the historic sell-off triggered by U.S. President Donald Trump has concluded. Wilson reiterated his forecast that the S&P 500 index will reach 6,500 points by the end of the year, representing a 12% increase from current levels. He noted that reduced tariff pressures could pave the way for the Federal Reserve to cut interest rates, which would directly benefit stocks and other risk assets.
Wilson stated, "If the threat of tariffs diminishes, the Federal Reserve can rebalance its dual mandate. Although the growth outlook appears slightly optimistic, the policy balance may lean more towards stimulating the economy rather than curbing inflation." He emphasized that with the weakening of the dollar and progress in U.S.-China negotiations, the risk of economic recession has "significantly decreased," leading to improved corporate earnings expectations. "From a ratings adjustment perspective, the performance in the second half of the year is likely to exceed expectations, especially considering how poor the first half was."
