(Reuters) -In a series of global economic outlook notes published on Monday, Morgan Stanley said it favors U.S. stocks over global peers and raised its 2026 year-end target for the S&P 500 index to 7,800, citing robust earnings growth, AI-driven efficiency gains and a supportive policy backdrop.

Morgan Stanley's previous year-end target for the benchmark index was not immediately clear.

(Reporting by Rashika Singh in Bengaluru)