Morgan Stanley strategist Wilson believes that the adjustment of US stocks is coming to an end.

Morgan Stanley strategists believe that after the Middle East war led to the S&P 500 index experiencing its worst two-week performance since April's tariff turmoil, the adjustment phase of the US stock market is nearing its end in terms of both duration and price. Strategists like Michael Wilson believe that adjustments will only end when the highest quality stocks and indices are hit hard. They see the performance of the S&P 500 index since the conflict broke out as the "final adjustment phase". At the same time, 50% of the stocks in the Russell 3000 index have fallen at least 20% from their 52-week highs, indicating that the "threshold is still high" for the impact of rising oil prices on business and profit cycles. Therefore, their constructive view remains unchanged for the next 6 to 12 months. However, if the speed of oil price increases accelerates, the number of oil tankers passing through the Strait of Hormuz does not increase, and the US dollar/bond yield continues to rise, there may still be a small downside risk in the short term.