Morgan Stanley to Citigroup Turn Sour on U.S. Equity Outlook

Morgan Stanley to Citigroup Turn Sour on U.S. Equity Outlook

(Bloomberg) -- Morgan Stanley cut its recommendation on U.S. equities to underweight and its call on global stocks to equal-weight, citing “outsized risk” to growth through October.

Rising cases of the delta strain of Covid-19, and tension between elevated inflation expectations and low yields and easy monetary policy are at play during a time “that has historically poor seasonality,” strategists including Andrew Sheets wrote in a note on Tuesday.