Mike Wilson from Morgan Stanley has highlighted the strengthening U.S. dollar as one of the few obstacles that might impede the current stock market surge. This rally has contributed to several record highs in the U.S. stock market. As investors gear up for the latest round of corporate earnings reports, the S&P 500 Index recently marked its 46th record closing for the year.
During a recent interview, Wilson, the chief U.S. equity strategist at Morgan Stanley, noted that the stronger dollar could slow down the market rally. The Bloomberg Dollar Index has risen by about 2% since early October, as investors scale back their bets on future Federal Reserve rate cuts.
Wilson pointed out that the rally is robust, expanding across different sectors and supported by global central bank easing. He mentioned that this positive momentum is likely to continue until there is a significant economic downturn or liquidity constraints become apparent.
