The Russia-Ukraine war has aggravated global logistical disruptions, pushing inflation significantly higher. And the latest U.S. sanctions on Russia are expected to worsen supply disruptions. These factors, together with rising gas prices, are keeping the stock market under pressure. While economic growth is expected to decelerate, many experts don’t expect a recession in the near term. Michael Antonelli, managing director and market strategist at Baird, said, “I’m going to go in the ‘no recession’ camp for this year.”
Furthermore, according to Goldman Sachs, the U.S. economy might be able to avoid a contraction if it improves its current economic stability by expanding the labor market and consumer surplus. Given this backdrop, the Dow Jones Industrial Average has managed to gain 1.2% over the past month. Growing labor market optimism and impressive corporate earnings have helped the index stay in the green.
