Morgan Stanley’s Shalett Sees S&P Rally Sputtering Amid AI Risks

The furious comeback in US equities from the depths of last month’s rout is poised to come to a halt, according to Morgan Stanley’s Lisa Shalett.

The chief investment officer of the bank’s wealth management division says decelerating revenue growth from the Magnificent Seven megacap companies and waning earnings momentum more broadly will limit further market upside after a double-digit recovery in the S&P 500 Index from April’s lows.