[Morgan Stanley: Three Factors That Could End the U.S. Stock Market's Summer Rally] Odaily Planet Daily News - Andrew Sheets, Morgan Stanley's Global Head of Fixed Income Research, stated that the firm is closely monitoring three obstacles that could lead to a setback in the stock market this summer. Historically, summer is typically the strongest season for stock market performance. The first major risk is the resurgence of the Iran conflict. Sheets noted, 'The U.S. Strategic Petroleum Reserve has fallen to a historic low, and if the conflict escalates again, it could weaken the ability to respond to shocks.' The second major risk is Federal Reserve rate hikes. Sheets pointed out that the expectation of the Federal Reserve keeping rates unchanged through the end of the year is one of the key pillars supporting the current stock market rally. 'The risk is that this assumption could be wrong, and this error could become apparent very soon. There is certainly a view that if the Federal Reserve is concerned about inflation, it should not delay action.' The third risk is a weakening outlook for AI capital expenditures. Sheets said, 'The risk is that second-quarter earnings reports may reveal a more cautious approach to spending, possibly due to the recent underperformance of stocks from some companies that have heavily invested in AI. Given that current growth and profit outlooks are highly tied to AI, and investors have shown strong favor toward AI-related stocks, this situation could pose risks.' (Jin10)