Morgan Stanley’s Dan Skelly Suggests Stock Market is Bottoming
- The S&P 500 is currently priced at 6,848.26, up 3.73% over the past five days.
- Skelly estimates the market bottomed around the level of 6,300.
- The VIX, a volatility index, has decreased to 19.48 from a peak of around 30.
- Morgan Stanley does not anticipate a major economic recession in the near term.
Dan Skelly highlights a “productivity boom” in the US as a key factor contributing to current favorable equity valuations. He notes that despite ongoing challenges, the underlying narrative remains one of innovation and strong earnings potential in sectors like technology and productivity. The decline in volatility as indicated by the VIX also suggests stability may be returning to the markets.
With recent gains and signs of reduced volatility, analysts are cautiously optimistic about market recovery. The S&P’s rise alongside declining volatility could indicate a more stable investment environment ahead. Source
