Recent developments between China and the US are influencing the course of global competition. Morgan Stanley strategists have made significant statements regarding this process.

Led by Michael Wilson, Morgan Stanley strategists indicate that the upcoming agreements in the next few weeks will help prevent disruptions in supply chains. This situation positively affects companies' profit forecasts.

However, strategists express that the cautious stance of the US Federal Reserve and the decline in treasury yields have not yet triggered the expected rally in the S&P 500 index.

Wilson warns that US stocks carry a 5% risk of further decline due to concerns over tariffs and reduced fiscal spending. This is a crucial point for investors to consider.

In conclusion, agreements with China and global competition may lead to fluctuations in the markets. It is essential for investors to remain cautious and manage their risks during this process.