Morgan Stanley: Iran Deal Could Ease Fed Rate-Hike Bets, Support Bull Market

According to Morgan Stanley strategists led by Mike Wilson, a stable resolution to Middle East tensions could prompt the bond market to unwind its Federal Reserve rate-hike bets and increase the odds of the current bull market extending, the firm said in a recent report. The team expects market volatility to rise in coming weeks but reiterated confidence in continued U.S. equity gains. Recent declines were primarily driven by semiconductor stocks, a normal phenomenon in profit-taking rallies, particularly given the magnitude of the current advance, the report noted.
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