Stocks are at a risk of a correction if the Fed makes the right call on the economy, says Morgan Stanley
1. S&P 500 is up 33.75% since April, fueled by AI optimism. 2. Morgan Stanley warns of Fed policy risks, predicting a potential market correction. 3. Traders expect 50 basis point rate cuts this year, potentially disappointing investors. 4. Liquidity concerns may arise as Fed continues quantitative tightening. 5. Equity market seeks lower interest rates amidst high volatility expectations.