Not only tech giants, Morgan Stanley expects the 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. Led by Michael Wilson, the team indicated that the median company among S&P 1500 composite index components currently has an earnings per share growth rate exceeding 10%, marking the best performance since the post-pandemic recovery.

Additionally, analysts are still upwardly revising 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 median stocks." The second-quarter earnings season kicks off on Tuesday, with major banks reporting results first. According to compiled data, analysts estimate that profits for S&P 500 index components will grow by 23%, making this one of the strongest historical performances, except for recovery phases following major economic recessions. (Jin Shi)