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 pulled back 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.