Morgan Stanley: Confidence in the current bull market remains intact, and the rise in US stocks will further spread According to BlockBeats, on June 15th, Morgan Stanley strategists stated that US stocks may receive additional boost from capital rotation to cyclical, economically sensitive industries that have underperformed during the Iran War. Strategists point out that reports of increased traffic in the Strait of Hormuz, as well as signs of easing drag on the stock market from interest rates, oil prices, and the US dollar, are expected to push undervalued stocks into the market leading camp, as the previous market rally was highly concentrated in high growth technology stocks. The S&P 500 index is currently only about 2% away from its historical high. Strategists also stated that the recent pullback in the US stock market has been mainly led by storage chip stocks, due to a slowdown in profit momentum rather than a deterioration in fundamentals. In a bull market driven by profit growth, it is common for such a pullback to occur after a period of strong upward momentum. In the coming weeks, the market may still experience more volatility, but our confidence in the current bull market remains intact