Morgan Stanley warns of potential stock market correction within 30 days

Morgan Stanley chief US equity strategist Mike Wilson has warned that a stock market correction could occur within the next 30 days. While market participants often focus on artificial intelligence, Wilson identified rising energy costs as the primary threat to market liquidity.

Wilson noted that if oil prices reach levels of $120, $130, or $140 per barrel, it could act as a significant drain on liquidity by forcing households, corporations, and investors to redirect capital toward energy expenses. US benchmark crude prices have already seen substantial increases, trading above $100 per barrel.

Rather than recommending a general sale of equities, Morgan Stanley is advising a rotation toward companies capable of generating sufficient internal cash flow and those that do not rely heavily on external financing. Additionally, the bank initiated coverage on Coinbase with an equal weight rating and a $250 price target, viewing the platform as essential financial infrastructure rather than a pure cryptocurrency bet.