Wall Street Traders Anticipate Strong Potential for Year-End Stock Surge Fueled by FOMO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Source: CNBC
Market Trends: Traders on Wall Street suggest that stocks may rise towards the end of the year due to under-invested participants driven by fear of missing out (FOMO) and favorable market conditions related to artificial intelligence and deregulation.
Retail vs. Institutional Investors: Retail investors are currently the primary price setters in the market, actively buying, while institutional investors are seen as under-exposed.
Positive Market Indicators: Morgan Stanley highlights positive developments outside the AI sector, noting strength in global banking and a revival in the real economy, as evidenced by the performance of the Invesco KBW Bank ETF and the iShares Transportation Average ETF.
Retail Investor Activity: Recent data from JPMorgan indicates that retail investors have been consistently buying into the market, contributing to a strong overall market performance, with the S&P 500 up over 16% in 2025.
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Analyst Views on MS
Wall Street analysts forecast MS stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 165.870
Low
132.00
Averages
185.00
High
219.00
Current: 165.870
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Default Rate Warning: Morgan Stanley warns that default rates in private credit direct lending could spike to 8%, significantly above the historical average of 2-2.5%, which would have a major impact on sectors heavily reliant on high leverage, particularly in software.
- Market Reset Signal: While rising default rates may cause pain for some funds, industry experts believe this could lead to better underwriting practices and more realistic valuations, ultimately freeing up capital for stronger businesses and promoting a healthy reset in the market.
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See More
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- Target Price Increase: Goldman Sachs raised its target price for Venture Global from $15 to $18.50, suggesting that investors buying at the current price of $16.60 could see potential gains of over 11%.
- Optimistic Market Outlook: Morgan Stanley is even more bullish, projecting a nearly 33% rise in Venture Global's shares to $22, primarily driven by surging natural gas prices.
- Significant Earnings Potential: Analysts estimate that every $1 increase in natural gas prices could boost Venture Global's EBITDA by as much as $625 million, highlighting its profitability in the current market environment.
See More
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- Stock Price Surge: Venture Global's shares rose over 5% on Tuesday, closing at $16.60, reflecting market optimism about its future performance, particularly amid surging demand for liquefied natural gas (LNG).
- Target Price Increase: Goldman Sachs raised its target price for Venture Global from $15 to $18.50, indicating potential gains of over 11% for investors buying at current levels, showcasing analysts' confidence in the company's future profitability.
- Positive Market Outlook: Morgan Stanley is even more bullish, projecting a nearly 33% increase in Venture Global's stock price to $22, primarily driven by soaring natural gas prices, with analysts estimating that every $1 rise in gas prices could boost EBITDA by $625 million.
- Urgent Energy Supply Needs: With rising natural gas prices due to Middle East conflicts, Venture Global, as one of the largest LNG exporters in the U.S., is well-positioned to meet the increasing demand for reliable energy supplies, further solidifying its market position.
See More
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- Market Volatility: Stocks fluctuated throughout the day, alternating between gains and losses.
- Diplomatic Uncertainty: Investors were reacting to conflicting statements from the Trump administration and Iranian officials regarding potential back-channel diplomacy aimed at resolving the ongoing conflict.
See More
