Earnings are supporting stocks, but there are two risks to watch, says Morgan Stanley

Core Insights - The Federal Reserve's policy and funding markets may pose challenges despite stronger-than-expected earnings growth [1] Group 1: Federal Reserve Policy - The current stance of the Federal Reserve is seen as a potential headwind for the market [1] - Interest rate policies may impact funding conditions, affecting overall market performance [1] Group 2: Earnings Growth - Earnings growth has exceeded expectations, indicating resilience in certain sectors [1] - Stronger earnings may not be sufficient to counterbalance the challenges posed by Fed policies [1]