The market will continue to grind higher over the near-term, says Morgan Stanley's Lisa Shallet

Market Recovery & Tariffs - Treasury Secretary suggests tariffs haven't hurt the economy or markets, noting the market's rapid recovery from a 15% decline in April [1] - Morgan Stanley Wealth Management acknowledges the rapid recovery from the "tariff scare" [2] - Industry suggests it's premature to conclude the economy has avoided tariff impacts, citing ongoing policy resolutions and upcoming deadlines [3] - Market anticipates that any tariff impacts will be "digestible" [4] Market Outlook & Strategy - Market narrative focuses on potential stimulus from corporate tax cuts in the next 6-12 months, expecting it to boost earnings, capital spending, and productivity [4] - Short-term market momentum is strong, driven by tech-oriented leadership, with average positioning and sentiment suggesting further upward movement [6] - Firm's price target is 6500, anticipating continued gains in the next 6-8 weeks [6] - Industry anticipates a potential "sell the news" event after the debt ceiling and tax bill are resolved, as much good news is already priced in [7] - Concerns exist about identifying future upside surprises as 2026 approaches [7]