Mike Wilson, Morgan Stanley's CIO and Chief U.S. Equity Strategist, discusses the impact of recent tariff reductions and interest rate changes on the U.S. equity market. He notes that the reduction in tariffs helped to extend a stock market rally and improve corporate and consumer confidence, suggesting that trade headwinds have likely peaked. While acknowledging potentially softer lagging economic data in the coming months, he asserts that the market already priced this in April. Wilson updates his firm's S&P 500 price targets, pushing out the timeline for a $6,500 target due to a less dovish Fed and higher-than-expected Treasury yields. He concludes that while near-term risks remain, including overbought conditions and interest rates, he maintains a bullish 6-12 month outlook for U.S. equities.
