JPMorgan Says the Stock Rally Has Legs. Morgan Stanley Disagrees
- Rate-sensitive growth stocks likely to outperform, JPM says
- MS’s Wilson says disappointing earnings to push stocks lower
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Top Wall Street strategists are divided on whether the US stock market is poised to extend its longest winning streak of the year -- or slip back after another false dawn.
Morgan Stanley strategists said in a note Monday that the sharp rally since June is just a pause in the bear market, predicting that share prices will slide in the second half of the year as profits weaken, interest rates keep rising and the economy slows. But rivals at JPMorgan Chase & Co. said the rally -- which has pushed up the tech-heavy Nasdaq 100 index by over 20% -- could run through the end of the year.