Morgan Stanley strategists led by Mike Wilson warned that a global bond selloff
could trigger a significant equity correction if long-term yields keep rising.
They cited inflation pressures from elevated energy prices linked to the Iran
war and a hawkish Fed tone as drivers of higher rates. The S&P 500 back pulled
from a record high, while futures pointed to further declines. Wilson said bond
markets may need a lasting resolution to the conflict before yields stabilize
and equities recover.
