Financial institution Morgan Stanley foresees the S&P 500 Index reaching an unprecedented peak by mid-2026, according to a report, however, there's a condition attached.
Morgan Stanley, a leading financial services company, has made a bullish prediction for the S&P 500, forecasting that the index will reach an all-time high of approximately 7,200 by mid-2026[1][2][3][4][5]. This prediction represents a 14% to 15% gain from its current level near 6,300[1][2][3][4][5].
The firm's equity strategist, Michael Wilson, cites several factors for this optimistic outlook. These include a "rolling recovery" in corporate earnings, positive operating leverage, and favourable macroeconomic trends such as a weakening U.S. dollar, cash tax savings from the Inflation Reduction Act (OBBBA), easy year-over-year growth comparisons, pent-up demand, and an expectation of Federal Reserve rate cuts starting in early 2026[2].
However, Morgan Stanley also acknowledges some near-term risks that may cause consolidation or corrections. These include elevated 10-year Treasury yields, tariff-related inflation concerns, and seasonal softening in markets[2]. Despite these potential risks, the firm remains confident and states it is a "buyer of dips," expecting any pullbacks to be shallow[2].
Meanwhile, in the world of cryptocurrency, financial giant Charles Schwab is launching Bitcoin and Ethereum trading[6]. Elsewhere, Bitcoin could potentially reach $136,000 if demand remains resilient, according to Glassnode[7]. Additionally, Zircuit has launched an AI trading engine for cross-chain trading[8].
As for the traditional stock market, BioSig Technologies and Streamex are pioneering real-world asset tokenization in the US market[9]. The S&P 500 may decline in the third quarter of 2025, but is expected to recover[10]. It's also worth noting that rising Treasury yields, particularly if the 10-year note exceeds 4.5%, may result in an underperformance of some stocks[11].
References:
- CNBC
- Bloomberg
- MarketWatch
- Yahoo Finance
- Business Insider
- Reuters
- Coindesk
- Cointelegraph
- CoinDesk
- CNBC
- Bloomberg
- Morgan Stanley's bullish forecast for the S&P 500 doesn't seem to have dampened interest in cryptocurrency, as financial giant Charles Schwab recently launched Bitcoin and Ethereum trading.
- While the S&P 500 may experience a decline in Q3 2025, AI trading engines like Zircuit's for cross-chain trading could provide opportunities in the crypto market, with analysts predicting Bitcoin could reach $136,000 if demand remains resilient.
- As the traditional stock market and cryptocurrency worlds continue to evolve, innovative companies such as BioSig Technologies and Streamex are spearheading real-world asset tokenization in the US market, potentially disrupting traditional finance and investing methodologies.
