Morgan Stanley: Expectations of Federal Reserve interest rate cuts will drive the S&P 500 index to continue rising

BlockBeats News: On June 30th, Mike Wilson, Chief Equity Strategist at Morgan Stanley, pointed out that the stock market's rise since April has mainly been driven by fundamentals. Despite the possibility of consolidation in the short term, he remains optimistic about the trend for the next 6-12 months as corporate profits improve and market expectations for interest rate cuts rise. The bank believes that three major factors will support the upward trend: Profit improvement: The earnings per share (EPS) correction rate has rebounded from -25% in April to -5%, providing support for further upward movement of the stock index; Expectation of interest rate cuts: The market has begun to digest the loose policy of the Federal Reserve, and Morgan Stanley expects to cut interest rates a total of seven times by 2026; Risk mitigation: The decline in oil prices and easing of policy/geopolitical risks have significantly reduced concerns about economic recession. Wilson said that the current environment is favorable for a general market rise - the market will spread from high-quality large cap stocks to a wider range, and interest rate risk is currently controllable.