Strong earnings make current equity valuations 'totally fine' - Morgan Stanley's Wilson

Morgan Stanley strategist Mike Wilson said the earnings backdrop is much stronger than investors realize and that equity valuations remain justified. He downplayed worries about the 10-year Treasury yield, noting yields are less of a threat so long as bond-market volatility stays contained. The comments support risk assets, helping underpin the S&P 500’s gains (S&P 500 shown at 7,157.20, +0.69%) and suggest institutional confidence in equities driven by solid corporate results rather than rate fears. Overall, the note is constructive for U.S. equities and reduces near-term downside risk tied to rising yields, barring a spike in bond volatility.