Morgan Stanley Warns of Significant Stock Market Correction as 10-Year Treasury Yields Top 4.5%

According to Morgan Stanley Chief Investment Officer Michael Wilson, the stock market faces its first significant correction since late March as 10-year U.S. Treasury yields breach the 4.5% threshold. The bank had previously flagged the 4.5% yield level as a critical point where rising rates could exert more pronounced resistance on stock valuations. Wilson stated: “If long-term yields rise accompanied by higher bond volatility, we expect the stock market will experience its first significant correction since bottoming in late March.”