Morgan Stanley Wealth Management has released the results of its quarterly retail investor pulse survey. The findings show a significant increase in investor optimism as the market enters the third quarter on a positive note.
According to the survey, 61% of investors are now bullish, marking a 12 percentage point rise from the previous quarter when bearish sentiment prevailed. Additionally, 58% of investors believe that the economy is strong enough for potential interest rate cuts by the Federal Reserve, reflecting a 10 percentage point increase from Q2.
Inflation remains a primary concern for investors, although it has decreased slightly to 39%. Other concerns include tariffs and market volatility. Interest in international markets has grown, with 58% of investors showing interest in opportunities outside the United States.
Chris Larkin, Managing Director and Head of Trading and Investing at E*TRADE from Morgan Stanley, stated: “Amid tariff and geopolitical uncertainty, we’re still seeing the stock market rallying to all-time highs. While headwinds may be on the horizon, investors are holding their ground in sectors like tech and financials, while also looking abroad for new investment opportunities.”
The survey also highlighted investor views on sector opportunities for Q3 2025. Interest in technology increased by nine percentage points to 57%, making it a top choice among investors. The energy sector remained stable at 43%, while financials entered the top three at 35%, driven by consumer finance stocks.
The survey was conducted online from July 1 to July 16, 2025, with a sample size of 924 self-directed investors. It was administered by Dynata and includes various demographic segments based on investable assets and investing experience.
Morgan Stanley Wealth Management offers an array of services including brokerage and investment advisory services. Morgan Stanley itself is recognized as a global financial services firm with operations in multiple countries.
The information provided is not intended as investment advice or recommendations but rather serves informational purposes only. Investors are encouraged to evaluate investments independently or consult with financial advisors.