Morgan Stanley Slides 1.71% as $0.79 Billion Volume Ranks 170th Amid Global Market Rebalancing

On July 31, 2025, Morgan Stanley (MS) closed with a 1.71% decline, trading at a volume of $0.79 billion, ranking 170th in market activity. The firm’s research division and wealth management strategists highlighted evolving global economic dynamics amid shifting trade policies and market rebalancing pressures.

Analysts emphasized the waning influence of “American exceptionalism,” a multi-decade trend of U.S. market outperformance driven by monetary and fiscal stimulus, as well as globalization. Morgan Stanley’s Wealth Management CIO noted that the U.S. accounts for 25% of global GDP but holds a disproportionately large share of global equity valuations, raising sustainability concerns as fiscal support, rate differentials, and supply chain shifts recalibrate. The firm warned that de-globalization and protectionist policies could erode corporate margins and increase costs for onshoring production.

Corporate credit research leaders also flagged structural imbalances in U.S. economic growth, including rising inequality and policy challenges. They questioned whether uniform monetary policy can address divergent needs across sectors, particularly as small businesses and lower-income consumers face liquidity constraints. These insights suggest a potential rotation in market leadership as global economies invest in infrastructure, defense, and technology to counter U.S. dominance.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18%. This momentum-driven approach, leveraging liquidity surges in high-volume stocks, highlights the role of short-term liquidity concentration in driving returns. However, its future efficacy remains tied to evolving market structures and dynamics.