Strategists at Morgan Stanley are warning there are a number of big risks to a market rebound after recession fears in the United States triggered a major slide in global shares, sending the ASX to the verge of a correction.

The S&P/ASX 200 followed Wall Street lower over the last month after US President Donald Trump’s aggressive tariff policies created anxiety about inflation and a broader trade war, offsetting optimism from the Reserve Bank of Australia’s first rate cut in more than four years.