Morgan Stanley: The U.S. stock market pullback enhances the attractiveness of cyclical stocks

Morgan Stanley strategists stated that since early summer, U.S. stock valuations have significantly declined, and the investment attractiveness of certain market sectors is increasing. The team led by Michael Wilson pointed out that the capital goods sector is particularly prominent, with upward revisions in earnings expectations ranking among the top.

Analysts expect that the earnings of S&P 500 constituent stocks will grow by 25% year-on-year in the third quarter.