Morgan Stanley: U.S. stock investors should remain cautious in the short term

Zhitong
2025.10.20 11:21

Morgan Stanley's Michael Wilson stated that U.S. stocks still face unresolved risks from trade tensions and a slowdown in earnings revisions, and investors should remain cautious in the short term. The S&P 500 index has not yet recovered the losses from earlier this month. Meanwhile, as the earnings season fully unfolds, earnings revisions are gradually slowing down. Additionally, after two regional banks faced crises due to loan issues, cracks have appeared in the credit market, further exacerbating market panic. The strategy team wrote in a report: "Before declaring that there are no further risks of a pullback in the short term, it is essential to see a clear easing of trade tensions, stabilization in earnings per share revisions, and more ample market liquidity — these points are crucial."

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