#MarketRebound Recent market recovery has been driven by several factors, including reduced tariff concerns, hopes for lower rates, and strong earnings reports. However, the Morgan Stanley Global Investment Committee believes that markets may be ignoring macroeconomic issues such as negative real GDP growth and weakening demand in the manufacturing sector.

*Key factors of market optimism:*

- *Reduction of tariff concerns*: Easing tensions around tariffs has contributed to market optimism.

- *Hopes for rate cuts*: Expectations of interest rate cuts by the Federal Reserve have also boosted market sentiment.

- *Strong earnings reports*: Strong corporate earnings have aided the market recovery.

*Reasons for caution:*

- *Macroeconomic issues*: Negative real GDP growth and weakening demand in the manufacturing sector pose risks to the market.

- *Labor market tension*: Signs of tension in the labor market, such as declining consumer sentiment, may also impact the market.

- *U.S. government debt*: Rising U.S. government debt and interest expenses may increase borrowing costs.