Morgan Stanley strategist Wilson believes that the US stock market will continue to rise further.

Morgan Stanley strategist Michael Wilson stated that with the upcoming rate cut by the Federal Reserve and strong corporate profits, the US stock market will continue to rise after four consecutive months of gains. The strategist, who accurately predicted the rebound from the April sell-off, pointed out that the economy is entering the "early cycle phase," where nominal profits continue to grow, and borrowing costs are decreasing. He added that small-cap and other rate-sensitive stocks have underperformed this year, implying potential for catch-up. "We disagree with the view that 'rate cut expectations have been fully priced in'," Wilson wrote in the report. "Although we respect the upcoming seasonal soft patch, we will still buy on the dip if there is a pullback."