Stock Market Now Sees No Landing Scenario of Strong Growth and Sticking Inflation Ahead
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The stock market sees a "no landing" scenario of high US economic growth and persistent inflation ahead.
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Recent economic data has exceeded forecasts, complicating the previously expected "soft landing" view.
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Equity market leadership is broadening out from tech into more cyclical sectors like energy and materials.
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Morgan Stanley strategists say this signals the market is pricing in better growth, but quality stocks are still preferred.
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They view the 10-year Treasury yield as an indicator of sensitivity to the macro economy.