US market correction near end, Morgan Stanley says

Morgan Stanley strategists say the US market correction is entering its final stage. They note that the upcoming midterm elections should remove a major market overhang and create buying opportunities.

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Morgan Stanley logo appears in this illustration taken December 1, 2025. REUTERS/Dado Ruvic/Illustration

The United States market correction that began in June is entering its final stage, MORGAN STANLEY strategists said on Monday. The slump mirrors past cycles as the S&P 500 catches down to weaker breadth across the broader equity market. Investors are weighing clearing events as an entry point into quality cyclicals ahead of 2027.