Morgan Stanley's recent US Equity Strategy report paints an optimistic 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, largely driven by the Tech sector, underscores the potential for a broader earnings recovery. This positive outlook is supported by expectations of lower rates and tech-driven efficiency gains, as the ISM cycle is projected to improve this year.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) experienced a decline, dropping 3.35% to $88.94 at 9:40 AM on Monday, January 27.