Morgan Stanley’s Wilson Says Solid Earnings to Fuel Stock Rally

Morgan Stanley’s Michael Wilson said there were “clear signs” that an earnings recovery was underway and that US firms were enjoying better pricing power. “While overhangs from Federal Reserve guidance and the shutdown have weighed on recent price action, these are temporary headwinds on the way to a solid 2026 driven by earnings growth,” Wilson wrote in a note. The strategist has remained among the more bullish voices this year even as equities were roiled by a ramp up in US trade tensions, and more recently, a prolonged government shutdown.