Morgan Stanley’s Wilson Keeps 8,000-Point S&P 500 Target After Selloff

Morgan Stanley chief U.S. equity strategist Mike Wilson maintained an 8,000-point year-end S&P 500 target after a sharp technology-stock selloff, offering a more constructive view of the weeks ahead.

Wilson framed the next two to three weeks as a window to add exposure. His target is about 8.4% above Friday’s close. Morgan Stanley had previously paired the same year-end target with a near-term downside scenario in an earlier market outlook.

The S&P 500 fell 4.4% Thursday, and the Nasdaq 100 dropped 6.4%. The S&P 500 rebounded 0.3% Friday but remained 2.5% below its level when midterm election results were announced.

Concerns about tighter regulation of data center construction and the AI industry after Democratic victories contributed to the market pressure. Strategists differed on the outlook for the selloff and the sectors most exposed to it.

Ed Yardeni, chief investment strategist at Yardeni Research, set a 7,900-point year-end target and described the decline as a correction. He said the gradual deflation of the AI bubble did not mean a collapse that would seriously damage the economy. Jonathan Golub, chief equity strategist at Seaport Global Holdings, set an 8,200-point target and presented himself as a committed buyer.

Wells Fargo chief stock strategist Ohsung Kwon was more cautious, setting a 7,700-point target. He said semiconductor and AI infrastructure trades had helped support the market this year but could remain under pressure. The Philadelphia Semiconductor Index fell 12% Thursday and stood 36% below its June high.

Kwon also said concerns about reduced AI investment could support Alphabet and Amazon if investors expect the companies to cut capital spending and improve earnings expectations. He cautioned against becoming too bearish. Whether the selloff is nearing an end depends on how policy affects investment in AI infrastructure.