Warning of a Third Quarter Stock Market Correction

The bigger they come, the harder they fall—and perhaps sooner rather than later. The stock market these days is looking pretty big, so it should come as no surprise that yet another wise voice has been lent to the choir singing the notes of correction. Morgan Stanley’s Mike Wilson is warning that traders should brace for a significant pullback in the stock market as uncertainty swirls around the US presidential campaign, corporate earnings and Federal Reserve policy. “I think the chance of a 10% correction is highly likely sometime between now and the election,” Wilson said in an interview with Bloomberg Television Monday. The third quarter is “going to be choppy.”

Russia attacked a children’s hospital in Ukraine, part of a range of strikes across the country that local authorities said killed at least 36 people. In the capital, images emerged of crowds outside the Okhmatdyt pediatric hospital trying to remove rubble from the scene. The missile struck a building where children were undergoing dialysis, Ukrainian President Volodymyr Zelenskiy said. Ukraine’s Air Force said 30 of 38 missiles were intercepted in the attack, with damage caused by the remaining missiles and from falling debris. “We will restore everything that was destroyed by these terrorists,” Zelenskiy said in Warsaw as he made his way to a NATO summit in Washington. “Undoubtedly, we will respond.”