Morgan Stanley expects Q3 IPO acceleration after issuers raised $251 billion through mid-2026 and forecasts a dozen billion-dollar listings in H2. The firm also backs market-broadening trades, citing double-digit earnings growth in the median S&P 1500 and recommending Discretionary Goods, Transports and Regional Banks.
Morgan Stanley’s ECM team highlights that issuers have raised a record $251 billion through mid-2026, spurred by SpaceX’s $85.7 billion IPO allotment exercise and Alphabet’s $80 billion follow-on sale. With twelve companies poised for billion-dollar listings in H2, MS forecasts a front-loaded IPO window in Q3 before potential midterm-election volatility impacts Q4 activity.
Analysts at Morgan Stanley note the median S&P 1500 stock is delivering double-digit earnings growth—the strongest pace since 2021—driven by revenue gains and lean cost structures. The firm recommends clients increase exposure to Discretionary Goods, Transports and Regional Banks as momentum positions in semiconductors and hyperscalers face renewed pressure, with falling crude prices further enhancing the trade.
