Morgan Stanley strategists, led by Mike Wilson, have identified six bullish catalysts they believe are still underestimated by investors for 2026, forecasting continued gains for the S&P 500.
Compare Top Forex brokers and start trading and investing with a trusted partner
Key catalysts:
- Earnings growth: Mid-teens EPS growth is projected for 2026.
- Deregulation: Expected to boost capital productivity, especially in financials.
- Interest rates: 10-year Treasury yield seen dipping below 3.75% with Fed cuts in January and April.
- AI adoption: A growing percentage of businesses are seeing improved profit margins from AI.
- Declining oil and dollar: Should support S&P 500 earnings and consumer spending.
- Expanding valuations: Supportive conditions for P/E ratios to climb further.
Wilson’s top sector picks include financials, healthcare, consumer discretionary, industrials, and small-caps. His 2026 S&P 500 price target is 7,800, implying roughly 13% upside.
For investors looking to trade these assets, major brokers include eToro and XM.
Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
