Morgan Stanley: Next 2018 correction will be worse than February's

Tech stocks leading the way

Morgan Stanley has warned risks to the US stockmarket rally are once again starting to build after a number of companies such as Facebook and Netflix delivered poor earnings.

Analysts at the bank said this coupled with pro-cyclical companies falling behind, who are expected to surge at this point in the cycle, was a worrying sign the stockmarket was entering into another correction such as the one we saw in February, according to Bloomberg. On 5 February, the Dow Jones suffered its worst weekly loss since October 2008 plummeting 4.6% to 24,346 on 5 February while the Nasdaq fell almost 10% from a January high on 8 February, amid fears around the strength of the tech sector rally. Tech funds amass record $20bn in 2018 Recently, tech stocks have begun to ...