Morgan Stanley’s Mike Wilson Says S&P 500 Could Drop to 7,000 - Then Rally to 8,000 by Year-End

TLDR

• Mike Wilson keeps his S&P 500 year-end target at 8,000, even if the index dips to 7,000 first
• The market is shifting from early-cycle growth stocks toward quality companies with strong cash flow
• Semiconductor stocks have seen sharp corrections while the broader S&P 500 has stayed near highs
• The Fed remains a key risk, with a potential 25 basis point rate hike being floated as an “insurance” move
• Earnings breadth is narrowing, with a small number of large companies driving most of the index’s gains

Morgan Stanley’s Chief Investment Officer Mike Wilson is sticking with his call for the S&P 500 to hit 8,000 by the end of 2026. Speaking on CNBC, he said the index could drop to 7,000 first before recovering to that target.

The S&P 500 closed at 7,413.18 on July 27, 2026. That puts Wilson’s 8,000 target at roughly 7.9% above current levels, with his downside support level about 5.6% lower.

Wilson says the market is moving into a new phase. The early part of what he calls the “rolling recovery” is over, and investors are now being more selective about where they put money.

… Continue reading the full article at the original source below.