Morgan Stanley's latest 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 has experienced a slight decline, possibly due to broader market dynamics or profit-taking after recent gains. The report emphasizes the potential for a 14% EPS growth in 2025, driven by tech contributions and a favorable environment for service-oriented industries with limited tariff exposure. However, the market's immediate reaction suggests that investors may be cautious, balancing the positive long-term outlook with short-term uncertainties.
The ProShares Ultra S&P500 (SSO) ETF has seen a notable decline, dropping 3.19% to $95.89 as of 9:40 AM on Monday, January 27.