Morgan Stanley strategist Wilson: the debt ceiling dispute will trigger wild swings in US stocks

Morgan Stanley strategist Wilson: the debt ceiling dispute will trigger wild swings in US stocks. Morgan Stanley strategist Michael Wilson, one of the most pessimistic voices on Wall Street, expects the debate over raising the US government's $31.4 trillion borrowing limit to trigger wild swings in the stock market. Most clients "believe that things will be resolved eventually, but it is unlikely to be calm in the short term," Wilson wrote in a report, adding that many customers believe that this is a "lose-lose" for the market. Wilson, who accurately predicted a fall in the US stock market in 2022, said that even raising the debt ceiling before the so-called "deadline", the day the US Treasury ran out of cash, could squeeze liquidity and cause the index to fall, given its sensitivity to liquidity changes in recent history.