Stocks will drop as the economy is either about to enter a recession or the Fed is poised to keep rates higher for longer, Morgan Stanley CIO says

• Stocks are set to fall further, Morgan Stanley's top stock strategist Mike Wilson predicted.
• That's because the economy is either headed for a recession or the Fed will keep interest rates high.
• Both factors will weigh on corporate earnings, which are likely to fall below estimates, Wilson said.

Stocks are set to fall further, as investors realize the economy is either headed for a recession or the Federal Reserve is poised to keep interest rates higher for longer, according to Morgan Stanley's top stock strategist Mike Wilson.