Forget about a “soft landing.” Morgan Stanley believes stocks are positioning themselves for economic growth to remain strong. Strategist Michael Wilson said in a note Monday that the market is positioning itself for a “no landing” scenario given the broader participation seen in the S&P 500’s run to all-time highs recently. A “no landing” scenario means the economy will continue to slow despite the Federal Reserve’s higher rates. A soft landing indicates a slight slowdown before the Fed cuts rates. “Leadership in the stock market continues to broaden, as evidenced by the strength of our composite breadth indicator. This broadening is led by cyclical sectors (energy, materials and industrials), which support the view that the stock market is starting to weaken. devise a better growing environment,” Wilson wrote. Indeed, the non-tech parts of the market are performing well this year. Energy is the second-best performing S&P 500 sector over that period, up 16%. The industrial and materials sectors increased 10% and 8%, respectively. This market broadening outside of technology stocks comes as crude oil prices reach levels not seen since October. On top of that, the ISM manufacturing PMI reached the expansion zone for the first time in more than a year. How to Play Wilson reiterated his overweight stance on energy, noting that it has “fundamental and commodity support.” He also highlighted the outperformance of broader cyclical stocks, which are closely tied to the economy. “Although cyclically sensitive stocks and sectors have started to outperform, quality remains a key attribute for leaders,” he said. “We think this combination of quality and cyclical factors makes sense in the context of what is still a later cycle rather than a reacceleration of growth early in the cycle.” To be sure, Wilson still has an S&P 500 target of 4,500 for 2024, the second lowest in CNBC Pro’s Market Strategist Survey. This target implies a 13.5% downside from Friday’s close.