Morgan Stanley to Citigroup turn sour on US equity outlook

Investment banks from Morgan Stanley to Citigroup Inc. and Credit Suisse Group AG are cautioning investors about the U.S. equity outlook.

Morgan Stanley slashed U.S. equities to underweight and global stocks to equal-weight on Tuesday, citing “outsized risk” to growth through October. Rising cases of the delta virus strain, and tension between elevated inflation expectations and low yields are at play during a time “that has historically poor seasonality,” strategists including Andrew Sheets wrote in a note.

 

Sheets’ downgrade came the same day as Citigroup said any minor correction is at risk of being amplified given the extent