Morgan Stanley strategist Michael Wilson, who was previously bearish on US equities, has now become bullish for 2025.

He predicts that the S&P 500 will reach around 6,500 by the end of next year, which would be an 11% increase from its recent close.

Wilson's positive outlook is based on expected improvements in economic growth and potential interest-rate cuts by the Federal Reserve.

This revised target is a significant increase from his earlier projection of 5,400 for mid-2025, indicating a notable change in sentiment towards the US stock market's future.

Investors will be closely watching economic indicators and Federal Reserve actions to assess the likelihood of this optimistic scenario playing out.