Morgan Stanley strategist Michael Wilson suggested that near-term volatility could ultimately benefit equities by setting the stage for a stronger finish into year-end and 2026. He pointed to weak but not disastrous labor data, limited scope for immediate Fed rate cuts, and possible quarter-end funding pressures as drivers of choppiness through September and October. Still, he expects any market consolidation to pave the way for a durable earnings-led recovery.
Morgan Stanley’s Wilson: Market volatility could set stage for strong year-end rally
- Morgan Stanley’s Michael Wilson said equity markets may face short-term turbulence due to seasonal factors, labor-market weakness and restricted Fed policy flexibility. However, he argued that any near-term setbacks could set the stage for a more robust rally into year-end and 2026, supported by expectations of a broad earnings recovery.
