US to Drive Stocks in 2026 With 10%-Plus Gain: Morgan Stanley

Core Viewpoint - US stocks are expected to outperform global markets in 2026 due to strong forward earnings growth indicators and favorable economic conditions [1] Group 1: Earnings Growth - Forward earnings growth indicators for US stocks are reported to be very strong, suggesting positive performance [1] - If earnings grow in double digits, the US equity market could see an increase in double digits as well [1] Group 2: Economic Conditions - The expectation of the Federal Reserve cutting rates, combined with a stable economy, supports the positive outlook for US stocks [1] - The relationship between earnings growth and market multiples indicates that if earnings are growing, market multiples are unlikely to contract [1]