Morgan Stanley’s chief US equity strategist, Mike Wilson, believes the S&P 500 may have hit its lowest point after a recent capitulation event. The index plunged to a 2025 low, signaling potential recovery ahead. Wilson suggests the market will now trade sideways until economic clarity emerges.
- Capitulation on April 7th marked a potential market bottom as panic selling subsided.
- S&P 500 could trade sideways in a wide range until recession risks are clarified.
- Morgan Stanley sees 4,850–4,900 as a critical support level tested during the correction.
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