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U.S.-China Trade Dispute Fans Worries About What's Next for the Stock Market

1. Morgan Stanley warns of a possible correction in U.S. stocks. 2. Healthcare stocks offer the best hedge against policy uncertainty. 3. Trade tensions with China could lead to a significant pullback. 4. S&P 500 may decline over 15% without de-escalation. 5. Current bull market may stall due to concerns over rich valuations.

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FAQ

Why Bearish?

The warning of a potential 15% decline links directly to trade tensions; similar fears in the past have resulted in notable market corrections.

How important is it?

The article's insights on trade tensions and sector performance are highly relevant to S&P 500 investors.

Why Short Term?

Immediate impact expected as volatility increases and traders react quickly to trade news.

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