[Morgan Stanley Predicts Year-End 2026 U.S. Stock Target at 7,800 Points] Morgan Stanley predicts a year-end 2026 target of 7,800 points for U.S. stocks and expects U.S. equities to outperform other regions. In addition, the institution has upgraded its rating for U.S. small-cap stocks relative to large-cap stocks to 'Overweight' and adjusted ratings for certain sectors, raising the Consumer Discretionary sector from 'Underweight' to 'Overweight' and the Healthcare sector from 'Neutral' to 'Overweight.' Morgan Stanley also forecasts the U.S. Dollar Index to decline to 94 in the first half of 2026, followed by a rebound to 99 by year-end.