Morgan Stanley expects global mergers and acquisitions activity to hit a record $6.4 trillion in 2026, overshadowing the levels seen in 2021. This projection points to a broad-based revival in global dealmaking after years of high interest rates and market volatility kept executives on the sidelines.

Deal Activity on the Rise

Although the Middle East conflict and fears of AI-driven disruption weighed on sentiment earlier this year, Wall Street appears to have largely brushed aside those worries. Morgan Stanley said momentum picked up in the second quarter, with announced deals surging more than 64% from a year earlier, led by software, utilities, energy, and healthcare. Deal completions climbed more than 33%.

Companies have also been encouraged by signs that regulators under the Trump administration are more receptive to large deals, easing concerns that aggressive antitrust enforcement could derail transactions. The brokerage expects deal opportunities to expand as geopolitical uncertainty recedes, prompting companies to reshape businesses while private-equity sponsors put their dry powder to work.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.