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Investment Banks Turn Sour on U.S. Equity Outlook

  • Morgan Stanley downgrades U.S. equities on growth risk
  • Positioning sets up market for steeper fall: Citigroup
Bloomberg business news
WATCH: Morgan Stanley’s Andrew Sheets sees markets in a “tough place” over the next 60 days as the firm cuts its U.S. equity outlook.Source: Bloomberg
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Warnings are getting louder that the relentless runup in American equity prices is set to falter.

Strategists at Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. issued fresh missives on the potential for negative shocks to upend a streak of gains. The spreading delta virus strain, a flagging global growth recovery or moves by central banks to exit pandemic-era stimulus programs all pose risks.