Morgan Stanley's Weaver Sees Continued AI-Driven Equity Momentum

Michelle Weaver from Morgan Stanley highlights the robust demand for technology stocks spurred by artificial intelligence advancements, suggesting sustained equity market momentum. She points out that a 10-year Treasury yield hovering around 4.5% is pivotal for equity valuations, with higher yields possibly exerting downward pressure on stocks. Although concerns about localized inflation, especially in gasoline prices, are present, Weaver attributes these issues to specific geopolitical tensions rather than broad economic factors. This insight underscores the complex interplay between economic indicators and market trends.