Bull surge coming soon on US stocks: Morgan Stanley says S&P 500 could jump as high as 7400

There are severe recession fears after the Donald Trump administration takes over, but until now, no major signs of any depreciation of the stock market has taken place. For starters, Morgan Stanley is predicting that the US stock market is destined for a major bull run in the coming days, that will extend for quite some time. This clearly means that stock prices will be booming in the coming days if things stay on track as being predicted.

Will the US stock markets see a major surge in the form of a bull run?

According to a Market Watch report, Morgan Stanley is moving its rating on US stocks to overweight, and targeting 6,500 at the end of 2025, compared to a June 2025 target of 5,400. Moreover, there is a certain tendency of the US stock market to boom in December, which is often known the “Santa Claus rally. This phenomenon refers to the historical tendency for the stock market to rise during the Christmas season. Therefore, there are high chances that the US stock markets could take a positive surge in the coming months, which would technically mean that the S&P 500 could regain any points they lost in September and October.

Institutional investors often engage in portfolio rebalancing and tax-loss harvesting before the year ends. This can lead to buying pressure on certain stocks, driving up their prices. This is indeed an important point which could benefit the stock market in the coming days.

FAQs:

Is the US stock market in crisis?

The US stock market’s current situation is being affected by a multitude of factors including the US Fed Rate cut, inflation fears and more.

Has the US Federal Reserve introduced a rate cut?

Yes, the US Federal Reserve has introduced a 50 bps rate cut a few weeks before, and some more may be coming in soon, if reports are to be believed.

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