Top Wall Street executives cautioned that U.S. equities may be nearing a correction, with both Goldman Sachs and Morgan Stanley CEOs warning that markets are running hot and vulnerable to sentiment shifts.At the Global Financial Leaders’ Investment Summit in Hong Kong, Morgan Stanley CEO Ted Pick said investors should brace for a 10% to 15% market drawdown, describing such a pullback as a natural and even healthy adjustment.“We should welcome the possibility that there would be drawdowns, 10% to 15%, that are not driven by some sort of macro cliff effect,” Pick said.He pointed to stretched valuations and a complacent market backdrop, with the S&P 500 repeatedly setting record highs despite lingering risks from inflation, policy uncertainty, and the ongoing U.S. government shutdown.Goldman Sachs CEO David Solomon echoed that caution, saying that markets tend to run ahead of fundamentals during long bull cycles, leaving them exposed to abrupt sentiment shifts.“When you have these cycles, things can run for a period of time. But there are things that will change sentiment and will create drawdowns, or change the perspective on the growth trajectory, and none of us are smart enough to see them until they actually occur,” Solomon said.Solomon added that “technology multiples are full”, suggesting overvaluation is concentrated in the tech sector, though he said the broader market remains less stretched. ----US equity indexes fell on Tuesday and that is being echoed here in Asia. Chinese markets are yet to open, but Japan's benchmark Nikkei 225 is down 2.5% This article was written by Eamonn Sheridan at investinglive.com.