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Morgan Stanley Sees Growing Risk of 20% Drop in S&P 500

  • Strategists say they’re turning more bearish on U.S. stocks
  • Many Wall Street banks have said the market looks vulnerable
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WATCH: Morgan Stanley’s Mike Wilson discusses his firm’s bearish call for the S&P 500 on Bloomberg TV.(Source: Bloomberg)

A plunge of more than 20% in U.S. stocks is looking more like a real possibility, according to Morgan Stanley strategists led by Michael Wilson.

While it’s still a worst-case scenario, the bank said that evidence is starting to point to weaker growth and falling consumer confidence.