Categories: Altcoins

Morgan Stanley Predicts New All-Time Highs for S&P 500 Amid Weaker US Dollar, Better Earnings Revisions, Incoming Fed Rate Cuts and More


Investment banking giant Morgan Stanley believes the S&P 500 will not revisit its April lows and instead rally to new all-time highs within a year.

Morgan Stanley’s global head of corporate credit research, Andrew Sheets, says in a new CNBC interview that he sees the S&P 500 surging by nearly 8% in 2026, powered by a favorable macroeconomic backdrop.

According to Sheets, the stock market appears to have digested US recession odds and is poised to steadily climb higher in the coming months.

“We think the inflation data will pick back up a little bit, we do think growth is going to slow some. But importantly, we think the equity market is forward-looking and we think the equity market is going to look ahead to a better rate of change. We’ve already started to see some of the earnings revision numbers incrementally get better.

We think that the dollar has been weak. We think it continues to be weak. That’s a tailwind for earnings.

So we think the market is going to see better earnings revisions. Already, we think we’ve kind of priced [in] a recession, priced [in] the usual drawdown back in the April lows.

So a better rate of change, better trend on earnings revisions, tailwind from a weaker dollar should help S&P earnings hold up. The Fed’s going to be cutting over the next 12 months. We don’t expect a recession. Usually when that happens, the multiple doesn’t decline. And so that’s why we think the S&P can move up to 6,500 by the middle of next year.”

As of Tuesday’s close, the S&P 500 is trading 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

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney



Source link

CryptoCanada

Recent Posts

Current Altcoin Bear Cycle is the Longest Ever – What’s Next?

While Bitcoin has reached new all-time highs, altcoins haven’t even started their bullish cycle. In…

19 hours ago

Market Expert Says Ripple Vs. SEC Lawsuit Is In Final Chapter, Here’s Why

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Market expert…

19 hours ago

Morpho and Gelato launch simple loans using crypto as collateral

Users across several blockchains can now take non-custodial, crypto-backed loans in just days, the two…

19 hours ago

Why Utility Will Decide Bitcoin’s Next Bull Run

Bitcoin’s price has been anything but steady over the years. Hype, speculation, and investor sentiment…

20 hours ago

XRP Price Completes Bearish Retest As Macro Signals Point To $2.65

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Crypto analyst…

3 days ago

Bitcoin Taker Sell Volume Surges On Price Breakdown – Market Shows Signs Of Oversold Bounce

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin is…

3 days ago