Story perspectives

Morgan Stanley Downgrades Equities, Flags Rising Treasury Yields

3/31/2026

Summary

Morgan Stanley Downgrades

Morgan Stanley downgraded global equities to equal weight and shifted cash and Treasuries to overweight.
Brent crude rose over 59% this month to $116 per barrel.
More than 50% of Russell 3000 stocks dropped at least 20% from their highs.
Morgan Stanley sees signs the S&P 500 correction may end, with earnings growth up 14% year over year.
Rising rates risk near term as the 10-year Treasury yield approaches 4.5%, a historical pressure point for valuations.

Summary

Market Movers Surge

Fannie Mae and Freddie Mac shares surged over 30% after Bill Ackman labeled them "stupidly cheap," signaling a tenfold gain.
CrowdStrike Holdings, Inc. rose more than 4% after Wolfe Research upgraded it to outperform, citing rising cyber risks.
United Therapeutics Corporation gained nearly 13% after Phase 3 Tyvaso results, prompting FDA priority review.
Sysco's shares fell over 11% due to debt concerns from its $29.1 billion Jetro Restaurant Depot acquisition.

History

Historical Context

The Stock Market Crash of 1929, marked by "Black Tuesday" on October 29, saw over 16 million shares traded, leading to a loss of approximately $14 billion in value. This crash, rooted in speculative excess during the Roaring Twenties, triggered the Great Depression, which lasted until the U.S. entered World War II in 1941, reshaping economic policies and regulatory frameworks.

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Morgan Stanley Downgrades

Morgan Stanley downgraded global equities to equal weight and shifted cash and Treasuries to overweight.
Brent crude rose over 59% this month to $116 per barrel.
More than 50% of Russell 3000 stocks dropped at least 20% from their highs.
Morgan Stanley sees signs the S&P 500 correction may end, with earnings growth up 14% year over year.
Rising rates risk near term as the 10-year Treasury yield approaches 4.5%, a historical pressure point for valuations.

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