The stock market is seeing some optimism as the corporate earnings season kicks in. Strong earnings results could mean that the economy is currently in better shape than feared. “3Q and 4Q earnings should confirm fundamentals remain anchored in resilient labor market and Covid reopening,” Dubravko Lakos-Bujas, JPMorgan’s head of global macro research, said.
On the other hand, the Organisation for Economic Co-operation and Development forecasted the U.S. economy would grow 1.5% this year and 0.5% in 2023. Moreover, it stated there is still some possibility that a recent easing in supply constraints and commodity prices could contribute to a faster moderation of inflation than projected.
