The economy may be headed for another slump, but the stock market is set to benefit the most from the fallout, according to an analysis by analysts at Morgan Stanley.
The index of S&P 500 companies on Monday rose 0.4 percent, or $1.19 billion, to 2,742.23, their highest level since the market began tracking the index on Aug. 31.
That compares with a decline of 0.2 percent in the broader index of broad U.S. companies, according the Morgan Stanley report.
Analysts have long been concerned about the effect of the economic slowdown on the U.K.’s markets, and the Dow Jones Industrial Average also hit a record high on Monday.
The Dow is down nearly 20 percent since the start of the year.
The U.KS. stock market rose on Monday, as investors cheered the prospects of a rebound in the U-K.
stock markets, but that was offset by worries about the effects of Brexit on the European Union.
The Dow was up 3.5 percent, the S&p 500 gained 3.3 percent and the Nasdaq rose 1.5.
The S&P 500 is up over 400 points over the past four sessions, according at a market tracker.
The Nasdaq is up about 200 points over that span.
There was little optimism that the U.-K.
economy would be stronger in the weeks ahead.
The government on Friday said that its jobless rate could be higher than anticipated in the months ahead, after its latest survey showed the economy contracted at the slowest pace in six years.
Britain voted to leave the European union last week, and many of the businesses and companies that rely on trade with the U .
K. will be less likely to invest in the region.
In the first quarter, the economy grew at an annualized rate of 2.1 percent, compared with 2.2% in the first three months of the decade, Morgan Stanley said.
The Fed said Monday that it expected the UBS index of consumer confidence to rise to a two-month high this month, with expectations that a new stimulus package from the Fed would help ease the pain of the slowdown.
More:The Dow Jones industrial average was up 4.1% at 17,844.23 and the S.& ;P 500 was up 2.3% at 4,837.21.
