S&P 500 downside target of 7,100–7,300... Wilson: 'Possibility the correction is in its final stages'

Morgan Stanley’s Michael Wilson said the S&P 500 correction may be in its late stages and that the index is approaching his 7,100–7,300 downside target range, a level it has not yet reached, from which he expects a rebound ahead of a possible year-end recovery. The strategist, cited by BlockBeats, advised adding exposure to quality cyclical stocks over the coming weeks rather than waiting for a perfect bottom, citing sharply reduced valuations and strong earnings-per-share trends. The call matters because it marks a shift toward selective risk-taking during a drawdown in the benchmark U.S. equity index. What to watch next is whether the S&P 500 holds the 7,100–7,300 zone and whether earnings momentum in cyclicals supports Wilson’s rebound thesis.