Morgan Stanley says global risk assets could regain momentum as strong growth, corporate earnings and AI-driven productivity offset concerns about rising bond yields. The bank argues higher yields mainly reflect resilient nominal growth rather than a weakening economy, which is why it has moved to overweight global equities versus fixed income. It keeps an overweight on US stocks, stays cautious on Europe due to energy headwinds, sees opportunities in banks and utilities, and flags weaker earnings growth and limited AI exposure for India. Key risks include an oil supply shock forcing excessive central bank tightening, geopolitical tensions and persistent inflation, with diesel supply a particular vulnerability.
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Original headline: Global equities may regain momentum as strong earnings offset concerns over rising bond yields : Morgan Stanley
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Related tickers and likely impact
SPY
▲ Likely positiveSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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