Morgan Stanley sounds the alarm on the S&P 5500 point virtual break: In times of volatility, one should stick to investing in quality assets

Morgan Stanley warns that although the S&P 500 index briefly broke through 5,500 points, the breakout rally is fragile. Analysts point out that four catalysts are needed to sustain a breakthrough of 5,600-5,650 points, including tariff reductions and a dovish shift from the Federal Reserve. The volatility of the 10-year U.S. Treasury yield is crucial for market direction; if the yield falls below 4%, it could drive the stock market up, while the opposite could trigger a flight to safety. Morgan Stanley advises investors to focus on high-quality stocks with strong earnings resilience that are undervalued, especially in the U.S. stock market