Latest US stock market highlights: Can policy shifts ignite a rebound?

Morgan Stanley Chief Investment Officer Mike Wilson recently sent positive signals in media interviews, believing that the US stock market has significant upside potential. His judgment is based on two core supports: first, the stable expectations of the Federal Reserve’s policy environment; second, the cooperation and support from Congress.

Driven by these two major favorable factors, Wilson is particularly optimistic about the recovery potential of consumer-related companies. He pointed out that the Federal Reserve is actively improving market liquidity conditions, which directly alleviates the systemic risks that investors were previously most concerned about. From this perspective, the recent support strength at the bottom of the US stock market is strengthening.

However, Wilson also reminds investors to remain rational. He believes that the mid-term election cycle this year may bring about phased market volatility, and investors should be psychologically prepared for a technical correction of about 10%. But he views this as a long-term opportunity rather than a risk signal—this judgment implies that institutional investors should buy on dips amid volatility.

Overall, the latest US stock market faces both opportunities from policy dividend releases and uncertainties from the election year. The key lies in how investors find a balance between risk and return.