From Financial Modeling Prep: 2025-06-12 11:49:00

Morgan Stanley analysts see a new bull case emerging due to easing U.S.-China trade tensions. Factors include manageable tariffs, positive 2026 earnings revisions, a weaker dollar, and potential Fed rate cuts. Corporate tax cuts and gen AI growth are driving market optimism. Key metrics show S&P 500 near all-time highs and VIX signaling calmer markets.

Risks to watch include rising global yield curves, widening U.S. deficits, and tariff deadline concerns. Investors are advised to monitor valuation signals, fiscal policy changes, and stay flexible with exposure to cyclical sectors and AI innovators. The market outlook remains positive, but caution is advised with elevated P/E ratios above 21.5x.



Read more at Financial Modeling Prep:: Emerging Bull Case: Morgan Stanley’s Optimism for Equity Markets