2nd Quarter Defined by Inflation

August 1, 2022

The stock market continued to struggle during the second quarter of the year. Unrelenting inflation has been the biggest economic headwind so far and a key concern in the most recent Consumer Sentiment Survey. Given the economic uncertainty, Nomura economists believe a mild recession before the end of the year is “more likely than not.”

Not all economic indicators were negative, however. Job growth remains strong, unemployment is down and business sentiment remains optimistic.

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