FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021.
REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsAug 21 (Reuters) - The S&P 500 will likely struggle to make more headway after rallying almost 14% so far this year as investors start to question the sustainability of the U.S. economy's resilience, Morgan Stanley equity strategists said.
One reason is that a "sell-the news" mentality has taken hold following second-quarter earnings, potentially slowing price momentum, said Morgan Stanley strategists, led by Michael Wilson.
"While limited in downside magnitude, this recent price action is a change and suggests stocks may be starting to question the sustainability of the economic resiliency we experienced in the first half of the year," said Wilson.
Wilson also sees fading tailwinds from excess savings among consumers, which leaves consumer discretionary stocks vulnerable.
Persons:
Brendan McDermid, Morgan Stanley, Michael Wilson, Wilson, Marc Giannoni, Susan Mathew, Saumyadeb
Organizations:
New York Stock Exchange, REUTERS, Treasury, Barclays, Credit Suisse, Thomson
Locations:
New York City, U.S, Bengaluru