US equities will continue their upward trend in the second half of 2024, albeit at a slower pace, according to Lisa Shalett, CIO of Morgan Stanley Wealth Management. "The path of least resistance between now and the end of the year is for markets to move higher." That said, investors should have "modest expectations" for equity returns between now and December, with the S & P 500 up 12 per cent so far this year, Shalett added. Despite Shalett's optimism, she said the expansion in corporate profits this year has already been reflected in equity prices, and investors will need to start "borrowing" their expectations for 2025 as 2024 continues. On the upside, she expects earnings to spread across all segments of the market, not just the mega-cap tech giants that have driven much of the rally since last year.