Investors are still expressing signs of concern despite the stock market hitting all-time highs, according to Deutsche Bank. After the Federal Reserve cut interest rates by a half percentage point last week, the S & P 500 and the Dow Jones Industrial Average hit new milestones , topping 5,700 and 42,000, respectively, for the first time. Together with the Nasdaq Composite, all three major averages scored weekly gains of more than 1%.
" Secondly, a hard landing scenario may still be on the table for investors, with Allen noting the risk of a recession as another possible flashpoint. Futures are pricing in more interest rate reductions through the end of next year than the Fed has suggested, meaning that downside risks could force the central bank to "move at a faster pace," he said.