Morgan Stanley Chief U.S. Equity Strategist Mike Wilson warns of a stock market correction within the next 30 days.
Oil prices near $103 a barrel are draining capital from the market and creating a funding squeeze. Wilson identifies this liquidity drain as the primary catalyst for a downturn rather than artificial intelligence hype or weakening earnings.
Corporate earnings fundamentals remain relatively strong despite the potential for a funding-driven correction. Wilson characterizes the outlook as a correction rather than a fundamental market breakdown. Bank of America has also issued recent warnings regarding building market risks.