PANews reported on November 17 that Morgan Stanley forecasts a target price of 7,800 for US stocks by the end of 2026 and expects US stocks to outperform other regions.

In addition, the agency upgraded its rating on U.S. small-cap stocks relative to large-cap stocks to "overweight," while also adjusting the ratings of some sectors, upgrading the consumer discretionary sector from "underweight" to "overweight" and the healthcare sector from "neutral" to "overweight."

Morgan Stanley also predicts that the dollar index will fall to 94 in the first half of 2026, before rebounding to 99 by the end of the year.