'We were wrong' to write off stocks' AI-fueled rally, Morgan Stanley says

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'We were wrong' to write off stocks' AI-fueled rally, Morgan Stanley says
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Morgan Stanley says it was wrong to write off stocks – but warns cooling inflation could still kill the rally

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By June 2024, his team expects the S&P 500 to fall to 4,200 points – around 8% below the level it traded at as of Monday's closing bell.rather than boost"We believe inflation is now falling even faster than the consensus expects, especially the inflation received by companies," he wrote in Monday's note.

"With price being the main factor that has held sales growth above zero for many companies this year, it would be a material headwind if that pricing power were to roll over."

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