- Investors evaluated whether the rise has gone too far given the forecast for inflation, economy, and earnings. A gauge of global shares was little changed following its strongest start to a year in a generation. Eurozone stocks increased.
- After registering the largest rise for the first two weeks in data going back to 1988, the MSCI ACWI index declined for the first time in seven days. S&P 500 and Nasdaq 100 index futures both decreased by at least 0.2%. The dollar's three-day losing skid was broken. Due to a holiday, US spot markets were closed. Bond yields increased throughout Europe.
- Even though US inflation appears to have peaked, aggressive policy tightening by the Federal Reserve and other central banks runs the risk of causing a global recession that will hurt corporate profits. Last week, the world bank issued a dire warning, predicting one of the sharpest slowdowns we have seen in the past five decades.
- Earnings will be a crucial driver going forward as traders judge whether businesses were able to overcome challenges like rising interest rates. Corporate earnings, including those of Wall Street heavyweights Goldman Sachs and Morgan Stanley, will also be a highlight of the busy week.
