Navigating the Uncertainty: Q2 Outlook Appears Choppy.

The outlook for Q2 remains uncertain as investors try to navigate the effects of fragile bank confidence and persistently high inflation. While the US interest rate outlook is settling around a peak in the Fed funds rate near 5%, Europe has priced in another 50 basis points in hikes this year and inflation is running hot. The Nasdaq is eying its best quarter in more than two years, while China's manufacturing activity expanded again in March. However, Japan's government plans to restrict exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a US push to curb China's ability to make advanced chips.