Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023.
REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsOct 16 (Reuters) - A rally in the S&P 500 in the fourth quarter of 2023 "is more likely than not", Morgan Stanley's Michael Wilson said in a note.
Morgan Stanley maintains its 3,900 year-end price target for the S&P 500 and believes the best way to position is a barbell of defensive growth stocks that have stable earnings, and late-cycle cyclical stocks such as energy.
Stocks came under selling pressure last week as investors rushed to Treasuries after a surprise attack by militant group Hamas against Israel, but S&P 500 still managed to eke out some gains.
"The fact that stocks rallied early in the week emboldened the view that equity markets could withstand another exogenous shock," Wilson said.
Persons:
Brendan McDermid, Morgan Stanley's Michael Wilson, Wilson, Morgan Stanley, Morgan Stanley's, Stocks, Shubham Batra
Organizations:
New York Stock Exchange, REUTERS, Thomson
Locations:
New York City, U.S, Israel, Bengaluru