# Morgan Stanley's Wilson: Equity Pullback Nearing End

> Morgan Stanley's Wilson says US stock market pullback ends soon; time to add risk.
- Title: Morgan Stanley's Wilson: Equity Pullback Nearing End
- Summary: Morgan Stanley's Wilson says US stock market pullback ends soon; time to add risk. Morgan Stanley's Michael Wilson advises investors to add risk as the S&P…
- Keywords: morgan stanley, michael wilson, s&p 500, equity pullback, ai investment, treasury yields, capital goods, broadcom, micron technology, nvidia, finance, markets
- Source: BigGo Finance — https://finance.biggo.com/news/ee3476fe-af8e-4b32-8871-62365703dccd
- Author: BigGo Finance
- Published: 2026-10-19T11:25:20+00:00
- Read time: 1 min
- Topics: morgan stanley, michael wilson, s&p 500, equity pullback, ai investment, treasury yields, capital goods, broadcom, micron technology, nvidia, finance, markets
## Morgan Stanley's Wilson
Morgan Stanley chief US equity strategist Michael Wilson says the months-long valuation pullback in parts of the US stock market is nearing its end.
## S&P 500 Valuation Status
The S&P 500 sits roughly 2% below its record with deteriorating valuations and market breadth.
## Quality Stocks Outperform
Quality stocks outperform the equal-weighted index as valuations adjust.
## Investor Advice
Wilson advises investors to add risk rather than avoid it by November.

> We advise investors to be ready for either a very rapid reconciliation or a slower bleed into November because in our view, that will be the time to add risk rather than shun it
## AI Investment Growth
AI compute investment by hyperscalers will climb from $980 billion this year to $1.58 trillion in 2027.
## S&P 500 Profit Growth
S&P 500 third-quarter profit growth is estimated at 24.6% year-on-year.
## Capital Goods Entry Points
Capital goods sector offers entry points with improving earnings momentum.
## Key Picks
Alphabet, Apple, Broadcom, and Micron Technology are highlighted as quality picks.
## TSMC Results
TSMC reported 68% high-performance computing revenue and 68.7% net profit growth.
## Key takeaway

Morgan Stanley's Michael Wilson advises investors to add risk as the S&P 500 valuation pullback nears its end.