Since the beginning of the year, the stock market has been under pressure due to investors’ concerns over surging inflation, Russia’s invasion of Ukraine, soaring crude oil and natural gas prices, and the possibility of aggressive rate increases by the Federal Reserve.
However, the market’s recovery over the past two weeks indicates that investors have largely priced-in these concerns. The peace talks between Russia and Ukraine have been progressing, and any settlement might act as a trigger for the market to bounce back in earnest. Recently, Russia announced its decision to “drastically reduce” its military activity in two key areas of Ukraine. Furthermore, as the earnings season draws close and corporate earnings are expected to be solid, investors should gain more confidence.
