Morgan Stanley Warns of Potential Market Correction Within 30 Days
Morgan Stanley's chief US equity strategist, Mike Wilson, has warned that a stock market correction could occur within the next 30 days if oil prices continue to rise. He highlighted concerns over energy costs draining liquidity from markets as crude prices remain above $100 per barrel. While not advising clients to sell equities, Morgan Stanley is shifting toward cash-generating companies and maintaining equity exposure. The bank also initiated coverage on Coinbase (COIN), assigning an equal-weight rating with a price target of $250—implying over 43% upside from its current level. This follows a shift in Coinbase's business model, where Bitcoin trading now accounts for less than 10% of revenue. Meanwhile, developments this weekend involving AI leaders like Anthropic’s Dario Amodei and OpenAI’s Sam Altman may trigger market volatility on Monday as concerns over slowing AI development emerge.
Topics: AI development slowdown liquidity concerns Morgan Stanley oil prices