Morgan Stanley’s chief investment officer Mike Wilson said U.S. equities should have further room to climb as the Federal Reserve enters its rate-cutting cycle, even after markets have surged back to record highs.pushed back against the view that rate cuts are already fully priced in“Equity returns tend to be strong during rate-cutting cycles, and rate-sensitive areas like small caps are barely off the relative lows,”While acknowledging that the coming weeks represent a seasonally weaker period for stocks, Wilson said Morgan Stanley remains a buyer of market pullbacks. added that equity valuations tend to stay supported when policy rates are falling and earnings growth is running above the long-term median. This article was written by Eamonn Sheridan at investinglive.com.