Morgan Stanley 2026 Outlook: Global Economy to Experience Moderate Growth Alongside Deflation, Uncertainty Remains High, but US Stocks Will Continue to Outperform Global Markets
BlockBeats News, November 17th, according to Reuters, Morgan Stanley expects U.S. stocks to outperform global markets by 2026 and is optimistic about the performance of global equities relative to credit and government bonds. Its supporting logic comes from the growth in artificial intelligence-related capital expenditure and an improving policy environment.
"Driven by microeconomic fundamentals, accelerated AI capital expenditure, and favorable policies, risk assets are poised for strong performance in 2026," the Wall Street investment bank pointed out in a series of global economic and strategic outlook reports released on Monday. Although the Trump administration's fluctuating tariff policy has led to continued volatility in global financial markets this year, most trade uncertainties are gradually dissipating as 2026 approaches.
The bank predicts that 2026 will see "moderate" global economic growth alongside deflation, but emphasizes that "uncertainty remains high, with outcomes potentially highly divergent," with the "U.S. becoming a key variable."
In addition, Morgan Stanley expects the S&P 500 index to reach 7800 points by the end of 2026, representing about a 16% upside potential from current levels, mainly driven by robust corporate earnings growth and AI-driven efficiency improvements. Under the influence of the Fed's dovish policy, U.S. small-cap stocks will outperform large-cap stocks, and cyclical sectors will outperform defensive sectors. The U.S. dollar index is expected to fall to 94 in the first half of the year, then rebound to 99 by the end of 2026.
The bank also predicts that the price of gold will reach $4500 per ounce in 2026.
You may also like

In the next 5 years, Vitalik will scale Ethereum like this

Sam Altman and the End of the World Capitalism

Wall Street Rings Inflation Alarm Bells Amid Iran Tensions, What Does It Mean for Cryptocurrency?

Qwen Open Source Model Enters Mobile, Nasdaq Tests Water Prediction Market, What's the Overseas Crypto Community Talking About Today?

MegaETH Co-founder: 48 Hours After Escaping Dubai, I Reassess the Entire Crypto Scene

Morning Report | Strategy increased its holdings by 3,015 bitcoins last week; BitMine increased its holdings by 50,928 ETH last week; Vitalik elaborated on the Ethereum execution layer roadmap

Why is it said that there are structural opportunities in encrypted AI?

Make Probability an Asset: A Forward-Looking Perspective on Predictive Market Agents

Consumer application issues

Arthur Hayes: The flames of war in the Middle East rise, Bitcoin is bullish

Legendary investor Naval: In the AI era, traditional software engineers have no value?

More absurd than knowing about the war in advance is knowing in advance about the assassination of Soleimani

Key Market Insights on March 2nd, how much did you miss?

How to systematically track high-performing addresses on Polymarket?

From Stanford Lab to Silicon Valley Streets: How OpenMind is Solving the "Last Mile" Problem of the Machine Economy?

PlanX: Reconstructing On-Chain Execution with AI, Moving Towards a New Paradigm

US Judge Allows Binance Unregistered Token Lawsuit to Advance
Key Takeaways: A federal judge in Manhattan dismissed Binance’s petition to resolve a securities lawsuit through private arbitration,…

Crypto VC Paradigm Plans $1.5 Billion Expansion into AI and Robotics
Key Takeaways: Paradigm is setting up a new $1.5 billion fund to explore AI, robotics, and other emerging…