Market perspectives

While hiring remains soft, low layoffs and balanced labor market conditions point to a backdrop of sustainable growth and moderating inflation, rather than an economy that’s at risk of tipping into recession.

Recent business activity surveys point to one of the strongest periods of economic activity in more than a decade outside the post-pandemic reopening surge, providing a key source of support for the stock market.

Market volatility has historically risen in advance of midterm elections before easing around Election Day and through year-end. While every election cycle is different, investors should be prepared to look through potential market jitters as election day approaches.