Market is now bottoming, says Morgan Stanley Wealth Management's Skelly

Summary

Dan Skelly from Morgan Stanley Wealth Management argues that the U.S. stock market has bottomed after a recent correction, citing underlying strengths like a productivity boom, strong earnings, and geopolitical de-escalation. He emphasizes AI as a key thematic driver and notes that stimulus measures may offset near-term challenges. The discussion covers market indicators such as VIX decline and the impact of geopolitical events on oil prices.

• Skelly believes the U.S. stock market has bottomed following a 9% correction.
• He highlights a productivity boom in the U.S. driven by innovation and technology.
• AI is emphasized as a persistent thematic driver that will continue to influence markets.
• Geopolitical risks, such as in the Strait of Hormuz, are seen as temporary challenges.
• Stimulus measures ahead of midterms could counteract high gas prices.
• The decline in VIX is cited as an indicator that market volatility has peaked.
• Underlying earnings strength supports the positive market outlook.
• The market is gaining conviction that geopolitical tensions will de-escalate.