- After the best start to a year in a generation, a global equity index stalled as investors assessed whether the rally had gone too far given the outlook for inflation, growth, and earnings. European stocks increased.
- While US inflation appears to have peaked, aggressive policy tightening by the Fed and other central banks risks pushing the global economy into a recession, which could harm corporate profits. Last week, the World Bank added to the gloomy outlook, warning of one of the sharpest slowdowns in the last five decades.
- This week, earnings will be a key catalyst as traders assess whether companies were able to navigate headwinds such as higher interest rates. The busy period will also include corporate earnings from Wall Street heavyweights such as Goldman Sachs and Morgan Stanley.