Morgan Stanley Strategists Predict Broadening US Stock Market Rally
Morgan Stanley strategists, including Wilson, are forecasting a potential broadening of the US stock market rally. They suggest that an additional boost could come from a rotation of capital into cyclical, economically-sensitive industries. These particular sectors have experienced underperformance during the ongoing Iran war, presenting an opportunity for growth as market dynamics shift.

Morgan Stanley strategists, including Wilson, have indicated an expectation for the US stock market rally to broaden. They suggest that this anticipated market expansion could receive an additional boost from a rotation of investment capital.
This rotation is predicted to move towards cyclical and economically sensitive industries, which have reportedly lagged behind other sectors. The underperformance of these industries is attributed to the ongoing Iran war, according to the strategists.
On May 16, 2026, ships were observed anchored in the Strait of Hormuz near Larak Island, Iran.
According to Bloomberg Markets, ...