<div id="readability-page-1"><p>The S&amp;P 500 (SPX) has fallen by 1% since securing a new record high last Thursday, with a steep selloff in bonds risking further losses, according to Morgan Stanley Chief Investment Officer Mike Wilson.</p><h3>Claim 55% Off TipRanks</h3>Forget margin or options. Here's how the pros trade QQQ <p>The 10-year Treasury yield is currently at 4.58%, its highest level since February 2025, while the 30-year yield is at 19-year highs. If rates continue to climb, &#34;we would expect the first meaningful correction in equity prices since markets bottomed at the end of March,&#34; wrote a team of analysts led by Wilson.</p> <h2><strong>War and Oil Lift Rates as Morgan Stanley Maintains Bullish View</strong></h2> <p>Yields have surged since the onset of the U.S.-Iran war on February 28, boosted by higher oil and gas prices, which in turn have raised the risk of inflation and elevated the odds of rate hikes. Rates could remain elevated until the war resolves, said Wilson.</p> <p>At the same time, Morgan Stanley remains bullish over the long term and has raised its 12-month price target for the S&amp;P 500 to 8,300, powered by resilient earnings and AI adoption. It also raised its 2026 year-end price target to 8,000 from 7,800.</p></div>

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<p>Morgan Stanley warns of a potential 'meaningful correction' in the stock market due to a bond selloff, with the S&P 500 down 1% since its recent high. The 10-year Treasury yield has reached 4.58%, the highest since February 2025. Analysts expect equity prices to correct if rates continue to rise, influenced by the U.S.-Iran war and rising oil prices. Despite this, Morgan Stanley maintains a bullish long-term outlook, raising its 12-month S&P 500 target to 8,300.</p>

- The S&P 500 has decreased by 1% since reaching a new record high, influenced by rising bond yields, with the 10-year Treasury yield at 4.58%.  
- Analysts from Morgan Stanley warn that if rates continue to rise, a significant correction in equity prices might occur, particularly due to the U.S.-Iran war's impact on oil and inflation risks.  
- Despite short-term concerns, Morgan Stanley maintains a bullish long-term outlook, raising its 12-month price target for the S&P 500 to 8,300 and its 2026 year-end price target to 8,000.

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Stock Market Faces 'Meaningful Correction' Risk from Bond Selloff, Warns Morgan Stanley