Global stock markets fell from record highs on Monday as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and retail sales this week. Stocks hit record highs across the world last week on optimism that vaccination programmes and the easing of lockdowns to combat COVID-19 would bode well for an economic rebound. Morgan Stanley noted that despite the S&P 500 making all-time highs, small-cap stocks represented by the Russell 2000 small-cap index have underperformed the S&P 500 by 8% since peaking on March 12.
