Morgan Stanley shares a 3-part cocktail that could rescue stocks from alarming price swings

From Yahoo Finance: 2025-04-14 18:58:00

Donald Trump’s tariffs have caused historic levels of stock market volatility, with the S&P 500 swinging between 5,000 and 5,500. Morgan Stanley outlines three key factors needed for the index to break out of this range, amid wild market swings. The Federal Reserve is expected to keep interest rates unchanged due to inflation concerns from tariffs. A dovish shift in policy could boost stock prices, but weak jobs data or credit market stress may precede it. The 10-year Treasury yield has risen significantly, impacting stock market movements. Trump’s potential trade deals with China could surprise the market positively, but risks remain, including earnings season and Treasury yield fluctuations.

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