Woofun AI reports that Morgan Stanley strategists anticipate resistance for US stocks in reaching new all-time highs as capital rotates away from top-performing technology equities. The analysis indicates that current positive economic data and earnings have been fully priced in, requiring exceptional news to drive further index gains. Investors demand concrete evidence that substantial AI capital expenditures will yield sustainable returns, prompting a shift from mega-cap tech to a wider array of sectors. Morgan Stanley advises focusing on profitability quality, taking partial profits in small-cap stocks, and increasing allocation to AI application beneficiaries. Previous research highlighted that large-cap tech stocks have lagged in price appreciation despite strong third-quarter results, leading to valuation declines. This contrasts with the rise in industrial and cyclical sectors driven by rate cut expectations, signaling a structural change in market fund flows.