Goldman Sachs, Morgan Stanley Warn of 15% Stock Market Correction Across U.S., Japan, and South Korea

Key Takeaways:Executives from Goldman Sachs and Morgan Stanley warned that U.S., Japanese, and South Korean stock markets could face a 15% correction.The warning comes ahead of sharp declines seen across major Asian and U.S. equity indices.Analysts cite overheated valuations, AI-driven market exuberance, and macroeconomic headwinds as risk factors.Global Markets Facing Correction RiskAccording to ChainCatcher, several senior executives from Goldman Sachs and Morgan Stanley cautioned that equity markets across the U.S., Japan, and South Korea could be nearing a significant 15% pullback.The comments were made just before recent market downturns, reinforcing growing investor concern about overvaluation and rising volatility in global equities.AI Boom and Overexuberance Raise Red FlagsAnalysts point to the ongoing AI investment boom, which has driven tech-heavy indices to multi-year highs, as a potential source of overexuberance.Executives reportedly warned that markets may have priced in too much optimism around earnings and technology growth, creating conditions ripe for a short-term correction.Macroeconomic Pressure Adds to ConcernsBroader macroeconomic uncertainty — including Federal Reserve policy, slower global growth, and rising bond yields — is also weighing on sentiment.Japan’s Nikkei, South Korea’s KOSPI, and U.S. benchmark indices have all shown signs of weakness as investors turn defensive.Market OutlookWhile some analysts believe the correction could serve as a healthy reset, others warn that tightening global liquidity could prolong volatility through year-end.Traders are closely watching upcoming U.S. inflation data and central bank statements for clues on how monetary policy may shape risk appetite across global markets.