Morgan Stanley Predicts U.S. Stock Rally to Broaden as Second-Quarter Earnings Season Kicks Off

According to Morgan Stanley on July 13, the investment bank's strategists forecast that U.S. stock gains will extend beyond mega-cap technology companies as other firms report strong second-quarter earnings. The median company in the S&P 1500 Composite Index is experiencing earnings-per-share growth exceeding 10%, marking the best performance since the post-pandemic recovery. Earnings season begins this Tuesday with major banks reporting first. Analysts expect S&P 500 companies to report 23% profit growth, representing one of the strongest earnings expansion periods outside major recession recovery phases.
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