MORGAN STANLEY: S&P 500 TO RISE, BUT GAINS WILL TAKE TIME Morgan Stanley expects the S&P 500 to reach 6,500 by mid-2026—a 9.5% gain—but says investors will need patience due to high Treasury yields, inflation, and tariff uncertainty. Key points: 🔸 Gains likely delayed until year-end, driven by Fed rate cuts, deregulation, and a weaker dollar. 🔸 The firm upgraded U.S. stocks to Overweight, citing a resilient global economy. 🔸 Strong Q1 earnings have powered a 19% rally since April lows, but growth is expected to slow in coming quarters. 🔸 Fed rate cuts may not start until September, with more expected in 2026. 🔸 Morgan Stanley sees 10-year yields dropping to 3.45% by mid-2026.