Morgan Stanley analyst Mike Wilson said the US equity pullback that began in
June is in its final stage, but the S&P 500 may still need to slump to
7,100–7,200 before a more durable rally can begin. He flagged three hurdles:
digesting AI-related financing supply, removing politics and geopolitical
uncertainty linked to the US midterm elections, and awaiting a potential turning
point in liquidity conditions. Morgan Stanley retains a year-end S&P 500 target
of 8,000, but Wilson said he wants to see market sentiment move further toward
panic selling and clearer stabilization in the semiconductor sector before
taking on more risk.
