Big Tech and Mag 7 stocks driving market rally, not tariff optimism

From CNBC: 2025-03-24 20:06:00

Morgan Stanley’s Mike Wilson predicts a shift back to U.S. stocks with beaten-up groups as winners. The S&P 500 gained 1.8%, Dow rose almost 600 points, and Nasdaq surged over 2% at the start of the week. The Magnificent Seven, including Apple and Tesla, contributed to Monday’s rally.

Wilson suggests a short window for gains, citing seasonal trends, lower rates, and oversold momentum indicators. He anticipates a tradeable rally from ~5500 and expects volatility to persist this year, possibly leading to new lows. Market weakness is attributed to fundamentals and technical factors, not tariffs.

Wilson’s year-end S&P 500 target is 6,500, implying a 13% gain. He sees the possibility of reaching a new high in the second half of the year. Join “Fast Money” Live for an exclusive event on June 5th with Melissa Lee and traders at the Nasdaq MarketSite.

Read more: Big Tech, Mag 7 fueling market rally, not tariff hopes: Morgan Stanley