Market Wakes Up to Fact That Fed Pivot Could Signal Recession
- Smaller Fed hikes imply weaker economy is looming: Sosnick
- Cyclicals, commodities lead week’s decline; bonds move higher
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The steady drumbeat of warnings that the American economy is careening toward a recession finally struck a nerve on Wall Street.
Investors who had tuned out warnings for the past two months — from the most inverted Treasury yield curve in four decades to a wipeout for 2022’s heady oil price gains — began trading as if the biggest threat to risk assets was now a looming downturn in growth.