21:33 - 8.06.2026

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June 8, Fineko/abc.az. Strategists at Morgan Stanley view the recent position-driven sell-off in US equities as a "healthy reset" rather than a broader market downturn.

ABC.AZ reports, citing a note from the team led by Mike Wilson, that the decline was primarily driven by semiconductor and memory stocks, where sharp year-to-date gains had triggered heavy positioning in hedge funds and leveraged ETFs.

The report emphasized that if the bull market is to survive through the end of the year, a temporary correction is both inevitable and ultimately healthy. Backed by solid corporate earnings growth and supportive macroeconomic data, the investment bank remains bullish. Consequently, Morgan Stanley has maintained its year-end target for the S&P 500 at 8,000 points, implying roughly an 8% upside from current levels.