Lates News

Several Wall Street giants' stock market forecasters collectively issued warnings to clients to be prepared for a market correction, pointing out that high stock valuations are conflicting with weakening economic data. On Monday, Morgan Stanley, Deutsche Bank, and Evercore ISI all warned that the S&P 500 index may experience a short-term correction in the coming weeks to months. Prior to this, the index had rebounded strongly from its April lows to reach record highs. Morgan Stanley strategist Mike Wilson estimates that the correction this quarter could be as high as 10%, as tariffs are impacting consumers and corporate balance sheets. Evercore's Julian Emanuel predicts that the S&P 500 index could drop by as much as 15%. The Deutsche Bank team led by Parag Thatte pointed out that considering the stock market has been rising for over three months, a slight decline should have occurred earlier. Wilson stated in a report to clients, "In recent weeks, we have noticed that investors should expect a slight correction in the third quarter."