Morgan Stanley analyst sends urgent S&P 500 message

Morgan Stanley strategist Michael Wilson signals that the S&P 500’s correction may be nearing its final stage after a near 3% rally that closed the index at 6,528.52 on March 31. The firm points to cheaper forward P/E, strong EPS growth (~14% YoY), and breadth weakness already priced in as signs that much downside is reflected in prices. Morgan Stanley maintains a bullish base case with a year-end target of 7,800, while warning that rising Treasury yields (10-year ~4.5%) are the main risk. The S&P is currently testing resistance between 6,525–6,550; a clear break above could confirm recovery, whereas rejection could push it back toward 6,340. Large-cap tech (NVIDIA, Microsoft, Meta) led the recent bounce.