Live Markets: Lack of direction to keep S&P 500 range-bound - MS

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12/08/2024 12:00

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    LACK OF DIRECTION TO KEEP S&P 500 RANGE-BOUND - MS
    The S&P 500 will trade range-bound as markets look for direction and evidence of better
economic growth and earnings, says Morgan Stanley equity strategist Michael Wilson.
    Wilson remains of the view that growth is now equity investors' primary concern, rather than
inflation and rates, and unless there is better data to support stocks, the benchmark index will
trade in a range of 5,000 - 5,400.
    "Markets are likely to remain vulnerable in the near term until we get better growth data or
more comfort from the Fed on policy support," Wilson said in a note on Monday.
    In the absence of any positive data or the Federal Reserve's policy decisions, equity prices
will be the key driver of short-term movement of stocks and sentiment.
    Regarding last week's global equities rout, Wilson says that although it is "convenient" to
blame a technical reversion in Japanese yen carry trade for the broader correction, it doesn't
properly acknowledge a deterioration in the fundamentals that began in April.
    He notes that the lack of a new theme to rotate into also weighed on the index.
    Wilson continues to recommend defensive stocks in sectors like utilities, healthcare, and
consumer staples. Parts of Real estate also tend to perform better when investors look for
growth.
        
    (Roshan Abraham)
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    FOR MONDAY'S OTHER LIVE MARKETS POSTS:
    FADE THE REBOUND IN STOCKS AND BONDS - BCA RESEARCH CLICK HERE
    MARKETS SERENE BUT SENSITIVE AHEAD OF KEY US DATA CLICK HERE
    SUMMERTIME SADNESS CLICK HERE
    SMOOTH SAILING CLICK HERE
    FUTURES IN THE GREEN CLICK HERE
    MARKETS SHIFT TO HOLIDAY MOOD CLICK HERE

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European equities steadily higher    https://reut.rs/3yMqn6S
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