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- The stock market isn't in for a year-end rally in 2023, Morgan Stanley's CIO Mike Wilson said.
- Mega-ca- stocks have tumbled after lackluster earnings, which has been pulling the S&P 500 lower.
- US companies and households face strong headwinds from high interest rates, clouding future earnings.
Investors hoping for a big rally to end the year after a stretch of weak performance for stocks might be disappointed.
According to Morgan Stanley's Mike Wilson, the market isn't likely to win back its gains from this summer. In a note to clients, the bank's chief stock strategist said he thinks the S&P 500 is likely to end the year at his long-standing target of 3900, about 6% lower than Monday's close of 4,166.82.
There are two reason for Wilson's downbeat forecast.
First, the macro outlook is souring despite strong data.