Morgan Stanley Says Earnings Shield S&P 500 From Iran War

Accelerating earnings are protecting the S&P 500 from deeper losses and masking a broader pullback in US equities, according to strategists at Morgan Stanley.

The team led by Michael Wilson points to resilient earnings and continued economic recovery as reasons the S&P 500 has fallen less than 10% since hitting a record high in January. Beneath the surface, they see evidence that stocks are in the “final phase” of a correction.