Morgan Stanley Strategist Sees S&P 500 Rally as 'More Likely Than Not' Despite Headwinds

S&P 500 rally in Q4 "more likely than not" despite headwinds according to Morgan Stanley strategist Michael Wilson
Wilson believes defensive growth stocks with stable earnings and late-cycle cyclical stocks like energy are best positions
Positive sentiment contingent on stock prices holding in short term, otherwise could see investors locking in profits
S&P 500 up 13% YTD boosted by AI euphoria and expected pause in Fed rate hikes, but turned negative last month
Stocks rallied early last week despite geopolitical tensions, emboldening view markets can withstand shocks