Mixed Results for Corporate Earnings and Stock Market Performance

Despite fears surrounding earnings season, if results exceed bearish expectations, the stock market could see a rise. Currently, most of the fear stems from expectations about the economy, with the Fed lifting interest rates to reduce economic demand and inflation. While this has been effective in reducing inflation, economic growth is also slowing, with first-quarter GDP expansion expected to fall to 1%. The full effects of the rate hikes may not have been felt yet, raising the possibility of a recession.