Morgan Stanley: AI risks will lead to a weak rebound of the S&P 500 index.

Lisa Shalett, Chief Investment Officer of Morgan Stanley Wealth Management department, stated that after the S&P 500 index achieved double-digit rebounds from its low in April, the slowing revenue growth of the seven super-tech companies and weakening overall profitability will limit further upside in the market. Since the peak of the tech giants index in December 2024, the narrative around the AI giants driving economic recovery has undergone a "fundamental shift." Since then, revenue growth of the seven tech giants has started to slow down, there has been a "arms race" in capital expenditures, and the group's free cash flow yield has also been shrinking.