Morgan Stanley outlines the best-case scenario for stocks in the 4th quarter

• The Federal Reserve delivered on Morgan Stanley’s best-case scenario for rate cuts last week.
• Morgan Stanley is now looking ahead at the perfect mixture of conditions for a strong fourth quarter.
• The firm is squarely focused on an improvement in the labor market driving the best possible returns.

The Federal Reserve nailed the rate-cut scenario that Morgan Stanley called its best-case result leading into the decision. Now it’s up to the labor market whether the firm can get its ideal fourth-quarter setup.