Morgan Stanley CEO warns market uncertainty could pressure heavyweight stocks
Morgan Stanley CEO Ted Pick warns that geopolitical tensions, energy shocks and AI infrastructure doubts could pressure heavyweight stocks, though US market resilience and strong corporate earnings offer support. Goldman Sachs CEO David Solomon highlights a 'tech super-cycle' driving profit growth c
Morgan Stanley Chairman and Chief Executive Officer Ted Pick said on 3 November at the International Financial Leaders Investment Summit in Hong Kong that negative market sentiment is primarily driven by energy shocks from geopolitical conflicts, strong doubts about data centre and artificial-intelligence infrastructure, and the global spread of populist politics. He noted that if risks clear in the short term, a Christmas rally could materialise; otherwise, index heavyweight stocks will remain under pressure and markets could fall further. He added that the market has already undergone some adjustment.
Pick said the US market has shown resilience, with the index rising about 10 per cent year to date, nominal economic growth of 7 per cent, near-full employment, and inflation largely under control excluding energy. Consumer confidence is relatively weak, but corporate earnings remain strong, and he observed that some high-quality companies are actively entering bond, equity and merger-and-acquisition markets.
Goldman Sachs Chairman and Chief Executive Officer David Solomon, speaking at the same event, said the market is in a "tech super-cycle". He said one factor supporting the stock market is strong earnings growth, but that growth is highly concentrated: 65 per cent of earnings growth among S&P 500 components comes from just 10 companies. The public may worry about an isolated event triggering a market correction. Solomon said he remains excited about the transformation and productivity gains from the current technology cycle, describing the process as potentially bumpy but one that must be navigated with appropriate management and governance.