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Morgan Stanley identifies four key market themes that will define markets this year.
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AI adoption, energy demand, and societal changes are set to reshape global industries.
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Top US stocks like Amazon and Nvidia, as well as smaller stocks, have been flagged as winners.
There are four major themes that will drive markets in 2026, says Morgan Stanley: a multipolar world, the spread of technology, social changes, and the future of energy.
Let’s get into each, starting with the concept of a A multipolar world. For Morgan Stanley, the world is becoming less global as governments become more protectionist.
“It is clear that policymakers worldwide are implementing policies that will accelerate the evolution of globalization that has characterized the post-Cold War period,” Stephen C. Bird, the bank’s equity strategist, said in a client note Thursday. “Put very simply, policymakers are willing to promote their vision of national and economic security through less open commerce and supply chains and more local control of key technologies.”
Second, the bank thinks AI will begin to gain more adoption By businesses at large, helping them increase profits. MS said the stocks will be judged on whether their businesses are sufficiently incorporating AI.
third, Energy demand AI has turned a corner for building infrastructure. Although energy demand has declined over the past two decades, it is now at an all-time high.
“We expect total US energy consumption to grow 10% over the next decade, reversing a decade of decline; by 2030, it will eclipse the previous peak set in 2007,” Byrd wrote.
finally, Social changes Work is being done (thanks to AI), and things like aging and longevity.
“We see many trends driving broad social impacts around the world, with impacts felt across a surprisingly broad range of industries,” Byrd wrote. “The ripple effect of AI-driven employment disruption/growth, aging populations, changing consumer preferences, the drive for healthy longevity, and challenging demographics across multiple geographies will be critical for governments, economies and corporations.”
As a way to play out these trends, the bank highlighted 14 U.S. stocks that its analysts rated “overweight.” The stocks are listed below, along with Morgan Stanley’s price targets and their expected growth in the theme each stock falls under.
Amazon
ticker: AMZN
area: Consumer discretion
Market Cap: $2.6 trillion
Above the price target: 32%
Primary Theme: Technological diffusion
