Wall Street Fears a Too-Hot Economy as Recession Bets Plunge
- Asset prices are diverging from positive data in rare split
- S&P 500 sees 22% likelihood of contraction vs. 98% in October
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As the odds of a recession collapse on Wall Street, markets are back to being vulnerable to any sign that the US economy is running too hot.
From high-yield credit to equities, the odds of an economic downturn priced into financial assets have fallen to the lowest since April 2022, according to JPMorgan Chase & Co. It’s a big reversal from the doom and gloom of the past year, when a recession was effectively seen as a done deal.