Morgan Stanley strategists have indicated that a weaker U.S. dollar, which has declined nearly 4% from January highs, is likely to enhance the earnings outlook for U.S. stocks, particularly benefiting multinationals. Companies in the S&P 500 with approximately 30% of their revenues generated overseas are expected to see improved earnings as the weaker dollar alleviates foreign exchange headwinds. This shift comes as the firm anticipates a rotation back into U.S. stocks, driven by stabilizing earnings revisions for the so-called 'Magnificent Seven'—Apple, Nvidia, Meta, Amazon, Alphabet, Microsoft, and Tesla. Morgan Stanley's Chief Investment Officer Mike Wilson forecasts a near-term rally for these mega-cap stocks, suggesting they could lead a resurgence in U.S. stock performance as they recover from recent downturns. The insights from Morgan Stanley highlight the potential for these companies to restore their dominance in the market as they prepare for the upcoming earnings season.