Morgan Stanley: Capital May Shift Away from Tech Stocks, Suggesting a Shift in the Structure of the U.S. Stock Market Rally
Svmuu News: Morgan Stanley stated that the decline in oil prices will ease inflationary pressures and drive capital from highly valued tech stocks toward undervalued cyclical sectors, with U.S. stocks shifting from a “one-sector rally” to a healthier, broad-based rally. The upward momentum in the U.S. stock market may no longer be confined to the tech sector but is gradually spreading to broader cyclical sectors. The strategy team led by Michael Wilson noted that economically sensitive sectors, which underperformed during the Iran conflict, may become key drivers in the next phase. Expectations of a long-term agreement between the U.S. and Iran have led to a marked rebound in risk appetite recently. The S&P 500 is currently just about 2% away from its all-time high. The market widely expects that, against the backdrop of stabilizing geopolitical tensions, global stock markets may see a new round of gains; European markets, with their higher weighting of cyclical sectors, are considered to hold a relative advantage. (Jin Shi)
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