Bloomberg Surveillance · Monday, July 6, 2026
Morgan Stanley's Mike Wilson believes that falling energy prices and contained inflation in services will allow the Federal Reserve to keep rates on hold, rather than hiking them. This scenario is expected to support equities and reignite the broadening trade, which was previously disrupted by the conflict in Venezuela and rising oil prices. Wilson noted that the market had already priced in the impact of the conflict before it occurred.
“Lower real rates should support equities and further fuel the broadening trade.”
“Since I say mid May, which is when we reiterated the Barny call, we had a different view of the most We thought all prices would come down, and that has allowed now FED pricing to sort of stabilize, and that has allowed the broadening trade to regnate.”
“And so that capex the sales factor has been driving a lot of stocks higher.”