Morgan Stanley: The risk of growth can end up with US stocks 5%

Michael Wilson, in “Morgan Stanley”, warned that US stocks are vulnerable to further decline by 5%, amid the fear of the impact of customs duties on corporate profits, in addition to low financial expenses. Wilson was one of the most prominent pessimistic voices on shares until mid -2024, as he expected the “Standard & Poor’s 500” index in the first half of this year to reach its lowest level, before recovering to 6500 points with the end of 2025. Market continuation in the absorption of these risks associated with growth, which can worsen before improving. Economic recession fears because Wilson has warned about the possibility that the index will fall 20% in the case of an economic recession, adding: “We are not at this stage yet, but things can change quickly, so it is useful to know the worst scenario for risk management.” US stocks have failed their global peers this year, as the fear associated with assessments has affected the shares of major technology, which has been the most important driving force for the High Standard & Poor’s 500 index over the past two years. The change of US President Donald Trump’s position on customs duties has also led to a state of confusion, while profit assessments in the United States have continued to reduce since the end of 2024. Wilson indicated that seasonal patterns indicate the possibility of improving profit assessments and the performance of the “Standard & Poor’s 500” index in the coming weeks.