These are the 3 big risks to the stock market, economist says

📆 22/05/2024 03:10 p. m.
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Federal Reserve policy, a surprise recession and disappointing future earnings for companies like Nvidia could rein in the stock euphoria, one analyst said.

There are risks ahead, though: Federal Reserve policy, a surprise recession and disappointing company earnings, one economist said.The U.S. stock market has been swooning. But there are risks that threaten to put a lid on the euphoria.

Additionally, the U.S. economy has remained strong amid high borrowing costs and as inflation has fallen gradually. That had led many forecasters to believe the economy is en route to a"soft landing." Surprise and uncertainty — both economic and geopolitical — are two things investors hate most, Carla Harris, senior client advisor at Morgan Stanley, said at the FA Summit.

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