The S&P 500’s notable recovery has got Wall Street concerned. Morgan Stanley sees warning flags in three big assets.

Investors are selling American assets over fears of a swelling budget deficit. Morgan Stanley says the trend is unsustainable.

Morgan Stanley turned bullish on most major U.S. assets, upgrading its stance on stocks and Treasuries to "overweight", bolstered by reduced tariff uncertainty, no chance of a recession and the room for further rate cuts.