Fed’s hawkish pivot is now the key hurdle for stocks, Morgan Stanley says

NodeGuardian · 2026-03-24T00:10:19+00:00

Morgan Stanley views the recent market pullback as a correction in an ongoing bull market, emphasizing the 15% drop in the S&P 500's P/E ratio. Analyst Michael Wilson highlights central banks' hawkish policies as a key barrier to recovery.

NodeGuardian

2026-03-24 00:10:19

Abstract generation in progress

Morgan Stanley believes the recent market pullback is a correction in a bull market that started last April, now in its advanced stages in terms of both time and price. Analyst Michael Wilson points to a significant 15% fall in the S&P 500’s forward price-to-earnings ratio since October and accelerating forward earnings growth. However, he warns that the hawkish pivot by central banks is the main obstacle to recovery, and a shift away from this stance is necessary for the correction to end.

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