Morgan Stanley’s Mike Wilson predicts high teens earnings growth in the U.S. equity market, favoring consumer goods. He sees a rebound in the sector due to falling interest rates and fiscal stimulus. The Dow Jones U.S. Consumer Goods Index has performed well, and Wilson expects a boost from tax cuts.

Wilson is optimistic about the market’s earnings outlook, expecting growth in the high teens. He credits a supportive Federal Reserve policy for stabilizing funding markets, reducing investor risk. While he warns of possible corrections, Wilson advises viewing them as buying opportunities rather than exits.

The S&P 500 and Dow Jones have seen modest gains YTD, while the Nasdaq 100 is slightly down. ETFs tracking these indices closed lower on Thursday. Futures for the indices were higher on Friday. Wilson remains positive about the year ahead, citing strong growth and supportive government policies for risk assets.

Read more at Yahoo Finance: Morgan Stanley’s Mike Wilson Sees ‘Crystal Clear’ Earnings Growth, Says ‘Big Beautiful Bill’ Will Fuel Consumer Stocks Rally