"Major Bank Warns of 'Summer Risk Burnout' Impact on Stocks"
Morgan Stanley strategist Mike Wilson warns that the recent increase in bond yields should raise concerns about equity valuations, as the U.S. has rarely posted such large deficits when the unemployment rate is low. BNP Paribas also sees potential for a risk-off week, citing caution in their global risk premium model and historically extreme short U.S. dollar positioning. They highlight the reversal in liquidity conditions and the impact on key assets. U.S. stock futures are moving higher, while Berkshire Hathaway reports a 6% rise in operating profits.