Morgan Stanley: Whether the Fed cuts interest rates by 25 or 50 basis points, the market can trade on a safe-haven tone

"If the jobs data weakens from now on, whether the Fed's first rate cut is 25 basis points or 50 basis points, the market is likely to trade on a safe-haven tone," Mike Wilson of Morgan Stanley, one of the most prominent bears until mid-2024, wrote in a note. On the other hand, he said that if the jobs picture improves, the Fed will cut interest rates by 25 basis points in a row by mid-2025, which could further support U.S. stock valuations.