On June 8, Morgan Stanley strategists stated that the sell-off in U.S. stocks last Friday, triggered by position adjustments, is a healthy correction. Supported by corporate earnings growth and resilient economic data, the team remains optimistic about the overall stock market. Led by Mike Wilson, the team noted in their research report that the decline was led by the semiconductor and storage sectors. These sectors have seen significant gains this year, while hedge funds and leveraged exchange-traded funds have clustered their positions, accumulating risk. The team believes that if this bull market is to continue until the end of the year, market adjustments are inevitable and have positive long-term implications. The strategists maintain a benchmark target of 8,000 points for the S&P 500 index, indicating about an 8% upside from current levels. The team expects corporate earnings to continue strengthening, with a broader growth coverage, and macroeconomic data will continue to support the market. (Sina Finance)