Good morning and welcome to Markets Desk.
Morgan Stanley is telling clients the post-war market order is breaking down, and that means bond yields have further to climb. The firm is steering investors toward quality large-cap stocks, AI adopters, and broad S&P five hundred exposure as the new regime demands more selectivity and less complacency.
Shifting to tech, Alibaba shares fell sharply after the company announced a major share issuance to fund aggressive AI spending. Investors pushed back hard, and the reaction reflects a broader global skepticism about whether current AI capital expenditure will ever generate returns proportionate to the scale of investment being made.
On the currency front, the Canadian dollar is sliding as tensions between Ottawa and Washington escalate toward what analysts are calling an all-out trade war. ING strategists put it plainly — as a smaller, more open economy, Canada absorbs the damage faster and deeper than its southern counterpart, and the loonie is pricing exactly that risk right now.
That's the tape. Markets Desk, signing off the floor.
