Morgan Stanley U.S. chief equity strategist Mike Wilson said market breadth is expanding, suggesting the leading names in the trend rally will shift toward companies in the middle stage of the economic cycle that emphasize free cash flow and operating efficiency. According to Sina Finance, Wilson wrote on Tuesday that the trend rally has the basis to restart, but the leaders will change, and said the recent pullback in trend stocks reflects the economy moving from an early to a middle cycle and a shift from AI infrastructure suppliers to AI application companies, rather than a simple rotation. He added that software, financial services, insurance, and health care services are more likely to lead the next leg of the rally.