Goldman and Morgan Stanley Upbeat on US Stocks Despite Iran War

Strategists across Wall Street’s biggest banks say their investment case for US stocks remains intact despite risks posed by the Iran war.

Higher oil prices, cost-of-living concerns and an uncertain outlook for Federal Reserve interest rates have helped drive the S&P 500’s worst two-week run since last April’s tariff turmoil. Still, Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. strategists point to support from earnings growth and valuations that, while still elevated, are less stretched than before.

The Goldman team said they expect the S&P 500 to eventually resume its ascent, following a historical upward pattern after ...