US Equity Strategy Weekly Warm-up A Healthy Reset

The market recently underwent a positioning-driven correction, particularly in Semis and Momentum stocks. Morgan Stanley views this as a healthy reset within a broader bull market supported by strong macro data and earnings.

Key Takeaways

• 1.Recent market pullback in Semis and Memory stocks is a necessary, healthy reset that facilitates broader leadership.
• 2.Bullish view remains based on robust earnings growth; prefer Consumer Discretionary, Transports, and Regional Banks.
• 3.Liquidity, which fueled the rally, is tightening as Treasury buybacks subside and RMP falls, presenting a near-term risk.

Table of Contents

• US Equity Strategy | North America
• Weekly Warm-up: A Healthy Reset
• Fresh Money Buy List
• Disclosure Section
• Analyst Certification
• Global Research Conflict Management Policy
• Important Regulatory Disclosures on Subject Companies
• STOCK RATINGS
• Global Stock Ratings Distribution
• Analyst Stock Ratings
• Analyst Industry Views
• Important Disclosures for Morgan Stanley Smith Barney LLC Customers
• Other Important Disclosures