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

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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By Anchalee Worrachate and Abhishek Vishnoi

September 8, 2021 at 5:15 AM UTC

Updated on

September 8, 2021 at 12:17 PM UTC

This article is for subscribers only.

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.