Morgan Stanley Strategist Willson Expects S&P 500 to Reach 6,500 Points by End of 2025

Morgan Stanley (NYSE:MS) strategist Michael Wilson, known for his bearish views on US stocks, holds a fully bullish outlook for 2025. The strategist expects the S&P 500 to finish the next year at 6,500, which represents an 11% increase from Friday's closing, driven by improving economic growth and further rate cuts by the Fed.

Wilson noted, "US valuations are rich, but better macro conditions in the US, the potential for a more negative US tariff policy for the rest of the world, and animal spirits driving the rally are helping." He added that the deregulation under the Trump administration would benefit US companies, although the effects of other potential policies remain uncertain.

In Morgan Stanley's 2025 outlook, Wilson stated, "We expect this expansion in earnings growth to continue as the Fed lowers rates next year and business cycle indicators continue to improve."