Morgan Stanley’s 2025 U.S. Equity Outlook:

Bull Market to Continue, $S&P 500 Index (.SPX.US)$ to Reach 6,500 by Year-End, Focus on Quality Cyclical Stocks

Morgan Stanley predicts the S&P 500 will benefit from the Fed’s rate-cutting cycle, stabilizing business indicators, and policy clarity. However, given the overbought nature of U.S. equities and pending policy decisions, a linear market rally is unlikely. The spotlight will be on Trump’s fiscal tightening measures.