Not only tech giants, Morgan Stanley expects U.S. stock rally to broaden

Odaily Planet Daily News Morgan Stanley strategists stated that, aside from tech giants, other U.S. stocks are also expected to report strong earnings in the current earnings season, further broadening the stock market rally. The team led by Michael Wilson noted that the median company in the S&P 1500 Composite Index currently has earnings per share growth exceeding 10%, marking the best performance since the post-pandemic recovery.

Additionally, analysts are still raising profit forecasts 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 reporting 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 recovery phases following major economic recessions. (Jin Shi)