Morgan Stanley Warns of Potential U.S. Stock Market Correction

Morgan Stanley's designated 'alert line' for U.S. stocks has been breached. According to Odaily, the firm's Chief Investment Officer, Michael Wilson, a well-known Wall Street bull, cautioned that if U.S. Treasury yields continue to rise alongside increasing volatility, the U.S. stock market could face its first significant correction since the end of March. Wilson stated, 'If long-term yields rise accompanied by increased bond volatility, we expect the stock market to experience its first significant correction since bottoming out at the end of March.' Previously, Morgan Stanley identified a 4.5% yield on the 10-year U.S. Treasury as a critical point where yields could pose a more significant resistance to stock valuations.