After the excitement of last week, things have calmed down, and stocks have made headway this afternoon, says Chris Beauchamp, chief market analyst at online trading platform IG.
Bank fears dissipate for now
“Last week seemed to point towards renewed volatility thanks to the banking sector’s troubles, but these have vanished for the time being. Stocks have begun the final week of Q1 on a more positive note – the lack of any more headlines about Deutsche Bank have been a big relief for investors, although nervousness still persists.”
But worries remain as recession risks grow
“A recession is still the broad expectation for the end of 2023, following the recent turmoil. What promises to provide volatility is the divergence in the market’s and the Fed’s views of when rates will come down. Normally April sees stocks pick up steam in their move higher, but this seems like a much dicier prospect this year.”
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