🇺🇸Wall Street Alert: Are U.S. Stocks on the Brink of a Brutal Collapse?

After a historic rally, Wall Street’s top strategists are now sounding the alarm. Morgan Stanley’s Mike Wilson estimates the S&P 500 could drop up to 10% this quarter, and even Deutsche Bank points to major risks—including sticky inflation, geopolitical turmoil, or a sharp economic downturn—that could derail equities at current lofty valuations.

Meanwhile, Goldman Sachs flags record-high investor sentiment and a $50 billion retail buying spree over the past month as dangerous excess, vulnerable to even a slight deterioration in the job market.

Cracks in the rally are already forming. Morgan Stanley’s June 2025 analysis highlights four unresolved risks: ongoing trade‑ and tax‑policy uncertainty, escalating geopolitical tensions (like Israel–Iran), potential weakening in the U.S. labor market, and mounting pressure on corporate profit margins. With equity risk premiums compressed to near-record lows and valuations demanding perfection, there’s very little buffer left for bad news.