TechFlow, May 13 — According to Jinshi Data, Morgan Stanley's Chief Investment Officer Mike Wilson believes the historic market sell-off triggered by Trump has ended. He reiterated his forecast that the S&P 500 will reach 6,500 by year-end (representing a 12% increase from current levels), noting that easing tariff pressures have created room for the Federal Reserve to cut interest rates, which would directly benefit risk assets such as equities.
Wilson stated, "If tariff threats diminish, the Fed can rebalance its dual mandate. While growth prospects are slightly more optimistic, policy may lean more toward stimulating the economy rather than curbing inflation." He emphasized that with a weaker dollar and progress in China-U.S. talks, the risk of economic recession has "significantly decreased," leading to improved corporate earnings expectations: "From a rating adjustment perspective, the second half is likely to outperform expectations, especially given how poor the first half was."
