Categories: Altcoins

Morgan Stanley Says Stock Market Has Priced in Tariff Best-Case Scenario, Warns Stagflation Issue Looming for Magnificent 7 Firms


Chris Toomey, a managing director at Morgan Stanley, thinks the market hasn’t priced in the risks of the Trump Administration’s tariffs.

Toomey says in a new interview with CNBC that equities are still likely “range-bound,” suggesting that the S&P 500 may correct after rallying close to 6,000 points.

“I think the concern we’ve got is that while we’ve taken the worst-case scenario with regards to the Liberation Day, we’re in a situation where I think the market’s right now probably pricing in the best-case scenario. I think everyone’s talking about the fact that there are probably going to be 10% tariffs across the board, 30% for China. I think that’s kind of baked in.”

Toomey also warns of the potential for stagflation, an unfavorable economic environment which is dominated by stagnant economic growth, high inflation and high unemployment.

The Morgan Stanley executive notes that companies with connectivity to China aren’t doing as well due to the tariffs.

“You can see that in the Magnificent 7, and you can see that in the rest of the overall S&P 500. So in our minds, that’s going to be a stagflation issue. If we do see GDP growth coming down, that might give us the opportunity for the Fed to step in next year and start cutting rates.” 

As of Tuesday’s close, the S&P 500 is trading at 5,935 points.

 

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney



Source link

CryptoCanada

Recent Posts

Current Altcoin Bear Cycle is the Longest Ever – What’s Next?

While Bitcoin has reached new all-time highs, altcoins haven’t even started their bullish cycle. In…

19 hours ago

Market Expert Says Ripple Vs. SEC Lawsuit Is In Final Chapter, Here’s Why

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Market expert…

19 hours ago

Morpho and Gelato launch simple loans using crypto as collateral

Users across several blockchains can now take non-custodial, crypto-backed loans in just days, the two…

19 hours ago

Why Utility Will Decide Bitcoin’s Next Bull Run

Bitcoin’s price has been anything but steady over the years. Hype, speculation, and investor sentiment…

20 hours ago

XRP Price Completes Bearish Retest As Macro Signals Point To $2.65

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Crypto analyst…

3 days ago

Bitcoin Taker Sell Volume Surges On Price Breakdown – Market Shows Signs Of Oversold Bounce

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin is…

3 days ago