Morgan Stanley: Capital Shifting From Tech to Cyclical Stocks as Oil Falls to $70

According to Morgan Stanley on June 15, the strategy team led by Michael Wilson said capital could shift from overvalued tech stocks to cyclical sectors including consumer discretionary, transportation, and regional banks as geopolitical risks ease and oil prices decline. The shift reflects improving market conditions for economically sensitive assets, with past underperformers poised for a rebound. Amid expectations of de-escalation in U.S.–Iran tensions and improved access through the Strait of Hormuz, risk appetite is strengthening.
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