U.S.-China Trade Dispute Sparks Market Correction Fears, Healthcare Stocks Seen as Safe Haven
Morgan Stanley's Michael Wilson warns the U.S.-China trade escalation may trigger the first significant stock market correction since April. Healthcare equities emerge as the preferred hedge against policy uncertainty, while semiconductor and quantum computing sectors face heightened downside risks.
Trade tensions have reignited volatility, with gold prices rising and tech stocks like Nvidia and Intel showing vulnerability. Despite recent pressures, major indices remain near record highs as investors weigh prolonged trade disputes against the bull market's momentum.
The S&P 500, Dow Jones, and Nasdaq continue to test all-time levels, but Wilson suggests this may represent the bull run's first meaningful decline. Market participants now watch for either de-escalation or further deterioration in global trade relations.
