Morgan Stanley’s Wilson Warns Stock Rally at Risk From Bond Rout

Equities are at risk of a significant pullback as the global bond selloff threatens to derail the artificial intelligence-driven rally, according to Morgan Stanley strategists.

If the bond market becomes more volatile and long-term interest rates keep rising, “we would expect the first meaningful correction in equity prices since markets bottomed at the end of March,” the team led by Mike Wilson wrote in a note.