Oil Above $150 Threatens 25% Global Equity Drop, Warns Morgan Stanley, Backs US Assets As 'Defensive' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Vanguard S&P 500 ETF (ARCA:VOO)
Published on March 30, 2026.
Morgan Stanley has issued a warning that global equities could drop by 25% if oil prices continue to hover around $150-$180 per barrel. The firm has reduced its overall equity exposure and upgraded U.S. Treasuries and cash to "overweight" from "equal weight". Despite these changes, it still prefers US stocks due to higher earnings-per-share growth. The company noted a shift in investor sentiment, with U.K. assets becoming a safe haven and "defensive" amid the Middle East conflict. However, top economist Mohamed El-Erian warned that the economic impact of the conflict has reached a critical level and could reach another turning point soon if tensions don't ease.
Related Articles
Bond blues hit Big Tech at the worst time
Big Tech faces significant debt and profit challenges due to massive capex investments, rising inflation, and a weak stock market.
Goldman says traders have Fed outlook wrong as oil surge drives rate-hike fears
Goldman Sachs warns investors to avoid underestimating the Federal Reserve's potential response to an oil-driven inflation shock, as market expectations shift dramatically amid rising oil prices and economic concerns.
Gold price per ounce on March 30, 2026
Gold prices rose 1.84% to $4,576.33 per ounce today, with recent gains offsetting declines of up to 13.31%, driven by inflation expectations and demand factors.