Morgan Stanley strategist Nick Savone stated in his latest report that despite the apparent calm in the S&P 500, CCC-rated bond spreads have closed above 1000 basis points, the widest since 2023, and the ratio of CCC to broader high-yield spreads has risen to a historical peak. Concurrently, US bank stocks have fallen 13% since August, with their 14-day RSI dropping to 27, creating a 33-point divergence from the S&P 500's RSI, an extreme not seen since 1993. The report also noted that the US 10-year government bond yield rose to 5.30% this week, the highest since 2002. Morgan Stanley maintains its view that the Federal Reserve will hike rates twice more this year, with the terminal federal funds rate expected to rise to a range of 4.25% to 4.50%. The bank earnings season, kicking off this Tuesday, is seen as a critical moment to test whether the market can bridge the gap between "fundamental resilience and investor concerns."