Morgan Stanley's Mike Wilson Sees Selloff Nearing End, Targets S&P 500 at 8,500

Morgan Stanley chief U.S. equity strategist Mike Wilson stated that the broad market correction is nearing its end and projected the S&P 500 could reach 8,500 by mid-2027. Despite a 12% year-to-date advance in the benchmark index, more than half of Russell 3000 constituents have fallen at least 20% from their peaks since June. Wilson noted that tightening financial conditions and a nearly 10% drop in economically sensitive equities signal the final phase of the pullback. He expects two to three more weeks of volatility before the market broadens toward enterprise AI adopters.