Not just tech giants, Morgan Stanley expects the U.S. stock market rally to broaden

Odaily Odaily reports that Morgan Stanley strategists have indicated that, beyond the tech giants, other U.S. stocks are also expected to post strong earnings this reporting season, which should further broaden the stock market rally. Led by Michael Wilson, the team stated that the median company in the S&P 1500 Composite Index is currently seeing earnings per share growth exceeding 10%, marking the best performance since the post-pandemic recovery.

Furthermore, analysts are still raising profit expectations for the consumer discretionary and transportation sectors, both of which are closely tied to economic growth. "We expect the market rally to continue broadening, driven by the earnings resilience of the median stock." The second-quarter earnings season kicks off on Tuesday, with major banks set to report first. According to compiled data, analysts expect profits for S&P 500 index companies to grow by 23%, which would be one of the strongest periods in history, except for the recovery phases following major economic recessions. (Jin Shi)