Investors Are Still Bullish on the Stock Market, Morgan Stanley Survey Finds

Investors are optimistic astir nan banal marketplace and expect to spot much gains successful nan 3rd quarter, according to a caller survey.

A study from Morgan Stanley Wealth Management released Wednesday recovered that much than half of respondents, aliases 59%, expect that nan equities market will emergence successful nan 3rd quarter. The online study reflected nan responses of astir 900 self-directed investors collected since nan commencement of nan month.

Some 61% of respondents see themselves bullish astir nan quarter, nan study reported, astir successful statement pinch a 4th earlier.

The marketplace has been beardown successful nan past year, lifted successful portion by of enthusiasm astir artificial intelligence (AI)-related shares and tech stocks broadly. Asked which sectors had nan astir imaginable successful nan 3rd quarter, study respondents remained bullish connected tech, pinch with 57% of respondents citing it arsenic 1 of those pinch nan apical potential—up from nan 2nd quarter. Energy was mentioned by astir half.

The S&P 500 has mostly risen to commencement nan 2nd half, though it's disconnected caller highs.

Investors Worried About nan Economy, Politics

Respondents to nan Morgan Stanley study remained uncertain astir nan system and nan governmental climate. Investors’ apical concerns were ostentation (54%), nan 2024 predetermination (34%), marketplace volatility (22%), and a imaginable recession (20%). 

Although ostentation has eased recently, it still remains supra nan Federal Reserve’s 2% target. The Fed has indicated it will trim its benchmark complaint arsenic ostentation cools, but it’s uncertain erstwhile that will happen. Just 13% of respondents said they deliberation nan Fed will commencement lowering rates this quarter, while 41% said they judge it will hold until nan 4th fourth to easiness rates. 

According to nan CME Group’s FedWatch Tool, traders spot a astir 98% probability that nan Fed will trim rates astatine its September meeting. The instrumentality forecasts complaint movements based connected fed costs futures trading data.