Not just tech giants, Morgan Stanley expects the US stock rally to continue broadening

Odaily Odaily reported that Morgan Stanley strategists said that, beyond major tech giants, other US stocks are also expected to post strong earnings this reporting season, further broadening the stock market rally. Led by Michael Wilson, the team stated that the median company in the S&P 1500 composite index is currently experiencing earnings per share growth of over 10%, the best performance since the post-pandemic recovery.

Additionally, analysts are still revising up 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 expanding, 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 historical performances, excluding recovery periods following major economic downturns. (Jinshi)