The subsided recession fears based on robust economic data and better-than-expected corporate earnings helped the market recover last month. In addition, a massive spending package to curb inflation is driving positive sentiment in the market.
However, investors’ optimism over these factors is expected to be short-lived as a surprisingly strong jobs report could motivate the Fed to consider a higher interest rate hike in its next meeting. Moreover, rising tensions over Taiwan could keep the market highly volatile in the near term. So, fundamentally weak stocks could keep losing.
