Despite a strong performance this year, the stock market remains exposed to several potential challenges, Deutsche Bank noted in a report on Tuesday.
While markets have experienced some volatility, they have rebounded quickly after the factors causing sell-offs eased.
- “This shows that any of these risks could trigger another downturn, especially if they persist or worsen over time,”
Risks:
- The first risk is an economic slowdown, pointing to the significant market dip in August 2024 following a disappointing jobs report.
- The second is escalating political tensions, such as those in April that unsettled markets during geopolitical conflicts in the Middle East.
- Lastly, an inflation shock poses a major threat to market stability.
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S&P 500 update:
Risk of FOMO seems to be winning out so far.
This article was written by Eamonn Sheridan at www.forexlive.com.
