The S&P 500 surged nearly 3% to close at 6,528.52 on March 31, marking its strongest day in weeks. Morgan Stanley strategist Michael Wilson suggests that the current market correction may be entering its final phase. He argues that much of the downside may already be priced in, with over half of the stocks in the broader Russell 3000 down over 20% from their highs. However, the forward price-to-earnings ratio has dropped sharply, reflecting increased caution among investors. The surge in oil prices, driven by the ongoing conflict involving the Strait of Hormuz, appears to be partially reflected in current valuations. Despite this, Wilson remains cautious about interest rates, suggesting that the Fed may not need to raise interest rates in response to oil prices.