Morgan Stanley, a leading investment banking firm, predicts that the S&P 500 will not drop to its April lows again but will instead reach new all-time highs within the next year. Andrew Sheets, the global head of corporate credit research at Morgan Stanley, shared in a recent CNBC interview that he expects the S&P 500 to surge by almost 8% in 2026, driven by positive macroeconomic conditions.
Sheets believes that the stock market has already factored in the possibility of a US recession and is set to rise steadily in the upcoming months. He stated, “We think the inflation data will slightly increase, and while growth may slow down, the equity market is forward-looking and will anticipate a better rate of change. Earnings revision numbers are already showing improvement. The weak dollar is also benefiting earnings, and we expect the market to witness better earnings revisions. The Fed is expected to cut rates over the next year, and with no recession in sight, the S&P can potentially reach 6,500 by the middle of next year.”
Currently, as of the latest market close, the S&P 500 is at 6,038 points.
Follow us on X, Facebook, and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Generated Image: Midjourney
