Stocks have faced significant declines recently, but experts on Wall Street believe the worst may have passed. Morgan Stanley and Citi indicated they see the S&P 500 hitting a bottom at 5,500. Both banks are maintaining their year-end target of 6,500, suggesting a potential 15% increase. The recent market downturn triggered by tariffs and economic concerns, which led to a substantial loss in market capitalization, seems to be slowing down. Analysts suggest various factors support the idea of a recovery in stocks, such as oversold market conditions, positive sentiment indicators, improved seasonal trends, a weaker US dollar benefiting corporate earnings, and lower interest rates potentially boosting economic results. Both Morgan Stanley and Citi anticipate a bounceback, particularly benefiting certain sectors that have been heavily impacted. Citi also noted that the S&P 500 is now at more favorable valuation levels, while top tech stocks appear to be more reasonably priced compared to previous highs.