Famed US Stock Market Bear: Bullish on Non-Tech Sectors, Market Logic Undergoing Profound Shift

Famed US stock short seller and Morgan Stanley chief strategist Michael Wilson and his team noted in their latest research report that the logic underpinning the US stock market is undergoing a profound shift: the baton of earnings growth is passing from tech giants to a broader set of market constituents. The median earnings per share (EPS) growth rate of components in the S&P 1500 Composite Index has surpassed 10%. Wilson attributes this broad-based rally primarily to the earnings resilience of midstream companies. Of particular note, the S&P 500 Equal Weight Index has begun outperforming its market-cap weighted counterpart for the first time since 2022. This signals that while tech giants are rallying sharply, traditional industries closely tied to macroeconomic growth are demonstrating stronger defensiveness and growth momentum.