Morgan Stanley doubts stock market rally's sustainability

The stock market is attempting to continue its recent gains, with the S&P 500 trading around 5,650. However, Morgan Stanley strategist Michael Wilson expressed skepticism about the sustainability of this rally, suggesting it may not last. Wilson noted that key indexes are below their 200-day moving averages, indicating potential challenges for the market. He believes that any rally may be temporary and that volatility could persist. Despite the cautious outlook, RBC Capital Markets lowered its "bear case" target for the S&P 500 to 5,500, suggesting limited losses ahead. This adjustment reflects a more cautious but still optimistic view on the market's potential for recovery.