US Economic Momentum is Strong, Analysts Say Major Stock Market Correction is Doubtful!

Jakarta, Pintu News – Morgan Stanley, the financial services giant, recently revealed that the United States (US) economy has very strong momentum and the likelihood of a major stock market correction is very small.

In a recent interview on CNBC Television, Dan Skelly, Managing Director of Wealth Management at Morgan Stanley, emphasized that the artificial intelligence narrative is driving the US economy and reducing the expected period of consolidation.

AI as a Key Driver

Artificial intelligence has become a major topic that supports the growth of the US economy. According to Skelly, AI not only affects the technology sector but also various other aspects of the economy. This shows that AI is not just a temporary trend, but has become an integral part of long-term economic growth strategies.

With AI as the driver, the mega-cap tech sector continues to benefit. Skelly added that while the market has been ripe for consolidation, the momentum brought by AI suggests that a major correction may not be on the cards. This paints a positive picture for investors worried about a sharp decline.

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Stock Market and Economic Dynamics

Morgan Stanley rejects the idea that the market is currently in a bubble state. Skelly refers to historical data showing that since 1950, there have been five bull markets with an average duration of about eight years. With the current market having run just over two and a half years since the low point in October or November 2022, Skelly argues that the market is still far from bubble conditions.

A comparison with the tech bubble of 1999 also shows significant differences. At that time, the tech sector on the Nasdaq was about 50% above its 200-day moving average. Today, the Nasdaq is only about 12% above that average, suggesting that the market is not as hot as in the previous period.

Market Outlook and Advice for Investors

With strong economic conditions and support from AI innovations, investors may see this as an opportunity to participate in long-term growth. Skelly suggests that while there are always risks, current conditions offer more opportunities than threats.

Investors are advised to consider diversifying their portfolios and not focus too much on the fear of a major correction. Moreover, with technology-driven growth, AI-related sectors such as hardware, software, and cloud services may offer attractive prospects. This is a good time to re-evaluate investment strategies and possibly allocate resources to assets that will benefit from this trend.

Conclusion

With Morgan Stanley’s in-depth analysis and optimistic outlook, market participants and investors have strong reasons to remain invested in the US stock market. The momentum brought by AI and stable economic conditions provide a solid foundation for continued growth.

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Reference

• Daily Hodl. Morgan Stanley Says US Economy Has Tremendous Momentum, Calls Major Stock Market Correction Unlikely. Accessed on September 29, 2025