Over the last few weeks, recession fears have been so strong that markets are expressing these fears no matter what central banks say. The Treasury bond market also flashed another warning signal this week as yields on U.S. government bonds inverted for the third time this year.
High inflation and monetary tightening are headwinds that could continue to pressure markets in the near term, and the market is increasingly pricing in a potential recession. This could negatively impact profit and revenue growth for most stocks as earnings season kicks off this month. Despite a good start so far this quarter, it is possible that the S&P 500 and the market overall will continue to pull back in the coming weeks and months.
However, there are also some positive signs when it ...
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