Morgan Stanley Wealth Management CIO: US stocks will rise further in the second half of the year

Lisa Shalett, CIO of Morgan Stanley Wealth Management, said that the US stock market will continue its upward trend in the second half of 2024, although the pace will slow down. "From now until the end of the year, the path with the least resistance is for the market to rise." Shalett added that investors should have "moderate expectations" for stock returns from now until December, as the SP 500 index has risen by 12% so far this year. Despite Shalett's optimistic attitude, she said that this year's corporate profit expansion has already been reflected in stock prices, and as 2024 continues, investors will need to start "borrowing" expectations for 2025. On the bright side, she expects returns to expand to various sectors of the market, not just the mega-cap tech giants that have driven much of the rally since last year.