Can Stock Momentum Hold Up?
Speakers
Mike Wilson
— Chief Investment Officer, Morgan Stanley
Summary
Mike Wilson remains bullish on US equities despite the sharp rebound, citing strong earnings growth, broadening recovery, supportive CapEx cycle, and manageable Fed transition risks. He believes the market has already priced in risks and the bull market is intact.
- US equity market experienced a dramatic bounce from oversold to overbought in 12 days.
- Mike Wilson remains bullish on stocks and expects the bull market to continue.
- Forward 12-month earnings growth is approaching 25%, much stronger than a year ago.
- First quarter earnings beat rates are double the long-term average.
- CapEx cycle is gaining momentum from earnings, tax incentives, and AI/reshoring demand.
- Sales surprises are running well above average.
- New Fed Chair Kevin Warsh signaled caution on rate cuts, possibly causing near-term volatility.
- The broad market and small caps show double-digit earnings growth, supporting the broadening thesis.
Trade Ideas
Bullish on US equities, bull market intact.
The US equity market has already priced in the lagging risks from higher commodity prices and tariffs, while the earnings picture is much stronger with forward 12-month earnings growth approaching 25% versus 9% a year ago. Earnings beat rates in Q1 are double the long-term average, guidance has increased, the CapEx cycle is gaining momentum from strong earnings, tax incentives, and AI/reshoring demand, and sales surprises are above average. The Fed transition to Kevin Warsh may cause short-term volatility but is manageable, leaving the bull market intact.
Up Next
This Morgan Stanley video, published April 27, 2026, features Mike Wilson discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Mike Wilson · Tickers: SPY