Morgan Stanley: Liquidity tightening is the main threat facing the US stock market

According to Jinshi, Mike Wilson, Chief Investment Officer and Chief U.S. Equity Strategist at Morgan Stanley, stated that liquidity, rather than interest rate hikes, is the main risk facing the U.S. stock market recently. He pointed out that the scale of the reserve management plan has decreased by about 75% from its peak, and the scale of Treasury repurchases has also been reduced by 50%. Wilson expects that the U.S. stock market will be volatile in July and may experience a pullback, with the next leg of the bull market driven by earnings being delayed until after the liquidity constraints are removed.