CEOs of Wall Street heavyweights Morgan Stanley and Goldman Sachs on Tuesday cautioned that equity markets could be heading toward a drawdown, underscoring growing concerns over sky-high valuations.

Fears of a market bubble come as the benchmark S&P 500 continues its meteoric climb, repeatedly hitting record highs and evoking memories of the dot-com boom.

“We should welcome the possibility that there would be drawdowns, 10 per cent to 15 per cent, that are not driven by some sort of macro cliff effect,” Morgan Stanley CEO Ted Pick said at the Global Financial Leaders’ Investment Summit in Hong Kong.

Markets have so far largely brushed aside concerns about inflation, elevated interest rates, policy uncertainty from shifting trade dynamics and the ongoing federal government shutdown, now

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