Morgan Stanley’s Wilson Says US Stocks Risk 7% Drop in Near Term

Morgan Stanley strategists, led by Michael Wilson, warn that US equities, specifically the S&P 500, could drop as much as 7% in the near term due to increased energy prices and bond market volatility. Despite strong corporate earnings helping to offset higher bond yields, the S&P 500's valuation has declined. Wilson predicts a potential drop to 7,100 points if financial conditions tighten further or energy prices rise, but still anticipates a year-end rally to 8,000 points driven by robust earni