A potential recession is on the horizon, according to an April 25 report from Bloomberg that followed a warning from Morgan Stanley strategists that the S&P 500 will “drop sharply” this year.
Investors are looking to to find financial havens after a steep market drop on April 22 stoked fears of a recession, with news of weak economic data, worsening lockdowns in China, and a more aggressive tightening policy by the Federal Reserve in May.
After Federal Reserve Chairman Jerome Powell endorsed the new policy to tackle rising inflation, many traders immediately took action to price in the half-percentage-point interest-rate increases expected at the bank’s next four meetings.
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