S&P 500 May Rise Amid U.S. Election and Year-End Sentiment, Says Morgan Stanley Strategist

According to Odaily, Morgan Stanley's Chief U.S. Equity Strategist, Mike Wilson, has indicated that as the U.S. presidential election concludes and year-end FOMO (Fear of Missing Out) sentiment emerges, investors are becoming less cautious. This shift could lead to a continued rise in the S&P 500 Index (SPX) as 2024 draws to a close, with a potential increase of up to 5% not being out of the question. In an interview on Monday, Wilson expressed his belief that the S&P 500 could reach 6000 points during a certain liquidation event, suggesting that there would be minimal panic and a general sense of optimism among investors. This projection implies a nearly 5% increase from last Friday's closing level of 5728 points. Wilson further mentioned that the S&P 500 might climb to 6100 points by the end of the year. However, he cautioned that due to high valuations and the unlikely acceleration of economic growth to levels that would drive valuations higher, the index is not expected to surpass this level under any circumstances in 2025.