Leading Wall Street firms are striking a more upbeat tone on U.S. equities. Strategists at Morgan Stanley and Goldman Sachs say a resilient domestic economy should prevent a meaningful pullback and could push the S&P 500 to fresh records before year-end, reversing the more cautious targets they adopted after the market’s April swoon. A chart circulated by Morgan Stanley underlines the view that the benchmark is poised for new highs, while several research notes describe a growing ‘bull case’ despite signs of cooling in parts of the labor market. Corporate activity is also improving. Morgan Stanley’s chief executive told investors the bank has seen an uptick in equity-capital-markets mandates and a steady expansion of its deal pipeline, with recent transactions performing strongly. He expects the firmer backdrop to translate into a robust finish to the current quarter. Optimism is not confined to the United States. At a regular press briefing in Beijing, Chinese Foreign Ministry spokesperson Lin Jian said more overseas companies are expanding in China and pledged further steps to ‘optimize the business environment and provide more policy dividends.’ The Chinese Embassy in Washington added that more than 73,000 foreign firms now trade in the country, the highest level in five years, a trend confirmed by the Danish and German chambers of commerce. Global institutions—including Goldman Sachs, Morgan Stanley and UBS—have reiterated positive calls on Chinese assets, citing pro-growth policies and economic stability. The parallel improvement in sentiment toward both the U.S. and Chinese markets points to a broader re-rating of risk assets after a volatile start to 2025.