MS · News · 20261103N

Market Correction Outlook

MORGAN STANLEY · 2026-11-03 · Importance 10 · Surprise 6

Morgan Stanley said the U.S. stock-market selloff that began in June may be nearing an end, with the November 3 midterm elections potentially reducing near-term uncertainty. Chief U.S. equity strategist Mike Wilson said about 60% of Russell 3000 stocks had fallen at least 20% since June, despite the S&P 500 holding up better. Wilson said the S&P 500 could still fall to 7,100–7,200 as large-cap stocks catch up with broader market weakness, viewing this as a possible final stage of the correction rather than the start of a deeper decline. The report identified the elections as a potential catalyst afterward.

Key facts

• Morgan Stanley said the U.S. stock-market selloff that began in June may be close to ending, with the November 3 midterm elections potentially removing a major source of near-term uncertainty. source
• Morgan Stanley's Mike Wilson said the S&P 500 could still fall toward 7,100 to 7,200 as the biggest stocks catch up with broader-market weakness, viewing this as a possible final stage of the correction rather than the beginning of a much deeper decline. source
• Morgan Stanley Chief U.S. equity strategist Mike Wilson said about 60% of Russell 3000 stocks had fallen at least 20% since June. source
• According to historical data from Morgan Stanley, the S&P 500 typically performs well in the 12 months following midterm elections, regardless of the political outcome. source
• According to Morgan Stanley, U.S. tech momentum, or the lack of it, had been worse than during the dot-com bust. source