Morgan Stanley Cuts U.S. Equity Outlook on ‘Outsized Risk’

The video discusses the current challenges facing the US market, including weak growth data and risks from the Delta variant. It highlights expectations for the Federal Reserve's upcoming meeting, where a more hawkish tone and potential rate hikes are anticipated. The discussion also covers the impact of tapering and the seasonal supply issues in bond and equity markets, which could affect market stability.

What are some of the challenges the US market is expected to face in the next 60 days?

• Strong growth data and low interest rates

• Weak growth data and Delta variant risks

• High inflation and stable employment

• Decreasing oil prices and strong dollar

How might the Federal Reserve's hawkish tone affect the market?

• It might result in higher interest rates

• It will decrease market volatility

• It could lead to lower interest rates

• It will stabilize the market

What is the expected impact on the S&P if growth data is strong?

• Yields will decrease, boosting the S&P

• The S&P will rise significantly

• Yields will increase, negatively impacting the S&P

• The S&P will remain unaffected

What concern does the speaker have regarding the Federal Reserve's 2024 rate hike projections?

• The Fed will accelerate the pace of rate hikes

• The Fed will delay rate hikes

• The Fed will maintain current rates

• The Fed will reduce rates

How might seasonality and supply affect the bond and equity markets?

• They will strengthen technical positions

• They could undermine technical positions

• They will have no impact

• They will lead to increased market stability