**[Morgan Stanley: U.S. Stock Market Expected to Enter Bull Market in 2026]** BlockBeats News, December 8 — Morgan Stanley analyst Michael Wilson stated that with the broadening of leading sectors in the market, improved corporate earnings, and only moderate weakness in the labor market, the U.S. stock market is poised for a bull market in 2026. He predicts that the consumer discretionary sector and small-cap stocks (both recently upgraded to overweight ratings) will continue to outperform the broader market, primarily driven by price stabilization, increased demand for goods, upward revisions in earnings expectations, and lower interest rates. Wilson believes the Federal Reserve remains a key driver, but he also noted that since late October, the earnings trend of the Nasdaq 100 Index has shown improvement. Against the backdrop of a gradually weakening rather than sharply deteriorating labor market, he believes the stock market will benefit from a supportive environment. (Bloomberg)