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. The report suggests that these industries, with their robust EPS revisions and pricing power, are well-positioned to benefit from the current market environment. The anticipated 14% EPS growth for the S&P 500 in 2025 is largely attributed to the Tech sector's contributions. Additionally, the report notes that services-oriented industries with minimal tariff exposure could gain from the USD strength observed in Q4, alongside a broader earnings recovery driven by lower rates and tech-driven efficiency.
The Invesco S&P 500 Equal Weight ETF (RSP) experienced a slight decline, dropping 0.07% to $182.06 at 9:40 AM on Monday, January 27.