Analytes are increasing their call to ask investors to sit out for the next few months, adding fuel to the bear market narrative. Their stance is that a recession is hibernating and might be inevitable.
On the flip side, bulls are upbeat that any downturn is short-lived. They argue that the stock market has already priced in any slowdown, and given their expectation that inflation will slow down in the next few months, a rosier outlook awaits us. Moreover, they linked us to the continued robust labour market in the tide of low unemployment and jobless claims, hovering around the lowest points in a decade.
📉Snap out of league💣
Shares tanked in the after-hour after the company reduced its June quarter expectation, citing a dramatically slowing economy. Its filing explained that the macro environment worsens faster than it had anticipated. This does not bode well in the risk-on sentiment during the regular trading session. After all, investors are already treading cautiously on the line of economic weakness.
You bet that it is dragging down Nasdaq and S&P 500 as the sector is experiencing collateral damage.
🏋No worry, banks, We got you!🗽
Even as sentiments soured in the after-hour, banks are doing well. JPM is giving a rosy outlook, giving banks’ stock the lift they need. Its banking sector giant’s investor Day helped spur a rally in the sector.
Pika World’s favourite KBE ETF rose sharply. JPM has been seen as a bellwether for financial stocks, and any forecast of its financial health is heavily viewed as critical to the general lending business of the financial world. It signals that the fundamental health of the US economy is vital despite the noise of headwinds of a war in Ukraine, inflation and a Fed tightening cycle.
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All is well.