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Morgan Stanley 2026 Outlook: Moderate rise of the global economy alongside deflation, high levels of uncertainty remain, but US stocks are expected to outperform global markets.
BlockBeats news, on November 17, reported by Reuters, Morgan Stanley expects U.S. stocks to outperform global markets in 2026 and is optimistic about the performance of global equities relative to credit bonds and government bonds. The support logic comes from the growth of capital expenditures related to artificial intelligence and an improved policy environment. "Driven by the micro fundamentals, accelerated AI capital expenditures, and favourable information from policies, risk assets are well-prepared for strong performance in 2026," the Wall Street investment bank noted in a series of global economic and strategic outlook reports released on Monday. Despite the Trump administration's fluctuating tariff policies causing continued turbulence in global financial markets this year, most trade uncertainties are gradually dissipating as 2026 approaches. The bank predicts that 2026 will present a "moderate" global economic growth alongside deflation, but emphasizes that "uncertainty remains high, and the outcome range may be extremely divergent," while "the United States...

