Morgan Stanley strategist Michael Wilson sees the S&P 500's rally extending into the back half of the year, underpinned by fundamentally driven earnings improvements and line of sight to Federal Reserve rate cuts. Here's a data‑rich breakdown—and exactly how to automate your monitoring with Financial Modeling Prep's APIs.

Fundamentals Driving the Rally

Earnings Revision Breadth Is Improving

• Current Level: Revision breadth has climbed to -5% from April's low of -25%.

• Why It Matters: Breadth typically leads actual EPS surprises—when revisions turn, analysts raise forecasts, and stocks follow.

• Historical Context: Similar inflection points in 2016 and 2020 preceded multi‑month rallies.

Pro tip: Stay ahead of estimate shifts by scheduling alerts via the Earnings Calendar API for each quarter's actual vs. consensus EPS surprises.

Monetary Easing on the Horizon

Markets Price In Aggressive Fed Cuts

• Morgan Stanley View: Seven rate cuts forecast for 2026.

• Market Reaction: Front‑running easing, long‑duration assets have outperformed.

• Valuation Impact: Lower discount rates boost present values of future earnings—especially for growth‑oriented sectors.

Actionable insight: Use the Economics Calendar API to automate alerts on Fed meeting minutes and rate‑decision dates.

Diminished Geopolitical & Policy Risks

• Oil Prices: Down 14% since June 19, reducing inflation and recessionary concerns.

• Legislative Wins: Removal of Section 899 eases a major hurdle to foreign investment.

• Leadership Broadening: With rate‑risk muted, expect large‑cap quality names to outperform first, then expanded leadership across sectors.

Actionable Insights & Next Steps

1. Automate Earnings Alerts
   Pull upcoming EPS release dates and consensus estimates via the Earnings Calendar API—flag surprises beyond ±5%.

2. Monitor Rate‑Decision Dates
   Subscribe to the Economics Calendar API for Fed announcements; build triggers when actual policy deviates from market expectations.

3. Gauge Sector Rotation
   Track sector‑level forward P/E via the Ratios TTM API to spot where valuation support is strongest.

Conclusion
Improving earnings revision breadth, anticipated Fed cuts and lower geopolitical risks set the stage for further S&P 500 gains in H2 2025. Use Financial Modeling Prep's APIs to automate these insights. Try the Financial Modeling Prep API for real‑time market intelligence.