Morgan Stanley: Capital may rotate from tech stocks, U.S. stock market rally structure faces a shift

Odaily reported that Morgan Stanley stated the decline in oil prices will ease inflationary pressures, driving capital from high-valuation tech stocks to undervalued cyclical sectors. The U.S. stock market is transitioning from a "one-way tech rally" to a healthier, broader advance. The upward momentum of U.S. stocks may no longer be confined to the tech sector, but is gradually spreading to a wider range of cyclical industries. The strategy team led by Michael Wilson pointed out that economically sensitive sectors, which underperformed during the Iran conflict, could become a key driver for the next phase.

Risk appetite has notably rebounded recently amid expectations of a long-term agreement between the U.S. and Iran. The S&P 500 is currently only about 2% away from its all-time high. Market consensus expects that against a backdrop of stabilizing geopolitical conditions, global stock markets may usher in a new round of gains. European markets, with their higher proportion of cyclical industries, are considered to have a relative advantage. (Jinshi)