Morgan Stanley Sees Tech Earnings Eclipsing Iran War for Stocks

Strong US corporate earnings led by a buoyant tech sector are overshadowing fears that the Middle East conflict could weigh on stocks, according to strategists at Morgan Stanley.

Earnings revisions for the S&P 500 have moved higher across multiple time horizons over the past month, the team led by Michael Wilson wrote in a note. Second-quarter estimates are up 2% and forecasts for calendar 2026 and the next 12 months have risen 3% and 4%, respectively.