Morgan Stanley's recent US Equity Strategy report paints a positive picture for the S&P 500, highlighting strong earnings revisions in sectors like Financials, Media & Entertainment, and Software. Despite this optimistic outlook, the S&P 500's current performance reflects a more cautious market sentiment. The report suggests that industries with robust EPS revisions and pricing power are well-positioned, particularly those with limited tariff exposure and benefiting from USD strength. However, the broader market appears to be grappling with mixed signals, as the anticipated 14% EPS growth in 2025 is yet to translate into immediate market gains.
The iShares Core S&P 500 ETF (IVV) experienced a decline, dropping 1.60% to $601.10 at 9:40 AM on Monday, January 27.