Rates, Volatility, and Investor Sentiment
While short-term risks remain, analysts point to several indicators suggesting markets may already be pricing in worst-case scenarios. Volatility measures indicate heightened anxiety, but also signal that selling pressure may be nearing exhaustion.
At the same time, economic data continues to show steady employment, resilient consumer spending, and moderating inflation. These conditions have helped anchor expectations that central banks will avoid aggressive tightening moves in the near term.
Bond yields are being closely watched, as sustained moves higher could pressure risk assets further. For now, yields remain within ranges that many analysts view as manageable.
Earnings Outlook and Market Resilience
Corporate earnings season is also expected to play a role in shaping sentiment. With expectations already lowered following recent market turbulence, companies may find it easier to exceed forecasts, potentially providing support for equities.
Market veterans emphasize that while geopolitical risks should not be dismissed, investors who have historically stepped back during periods of extreme uncertainty have often missed subsequent recoveries.
