1. Morgan Stanley's Mike Wilson sees a rotation back into U.S. stocks. 2. S&P 500 closed at 5,767.57, about 6% below its all-time high. 3. Wilson targets S&P 500 year-end at 6,500, a 13% potential gain. 4. Stabilizing earnings revisions for 'Magnificent Seven' drive market gains. 5. Volatility expected to persist, with potential new lows this year.
The expected rotation into high-performing stocks, particularly the 'Magnificent Seven', can boost S&P 500. Historical patterns show markets recover following stabilization of major stocks, often leading to gains.
The article’s focus on U.S. stock rotation and specific stock performance greatly influences market sentiment and potential capital flows, making it relevant to S&P 500 dynamics.
The anticipated gains are primarily tactical and could fade by Q2 earnings reports. Quick rallies often occur following stabilization but can reverse rapidly in volatile environments.