Morgan Stanley expects global mergers and acquisitions activity to reach an unprecedented $6.4 trillion in 2026, surpassing 2021 levels, amid a wave of deals fuelled by booming stock markets and renewed corporate confidence.
The forecast points to a significant rebound in global dealmaking after years marked by rising interest rates and market volatility.
Although sentiment was dented earlier in the year by conflict in the Middle East and concerns over disruption caused by artificial intelligence, Wall Street appears to have largely shrugged off those worries. Morgan Stanley said momentum accelerated in the second quarter, with announced deal volumes rising more than 64% year on year, led by the software, utilities, energy, and healthcare sectors. Completed deals rose by more than 33%.
Companies have also been encouraged by signs that regulators under US President Donald Trump's administration have become more receptive to large deals, easing fears that strict enforcement of antitrust laws could derail transactions.
Morgan Stanley analysts said in a client note: