Stock Market Update

[BRIEFING.COM] The major indices remain on the right side of the unchanged line, having pushed to new session highs a short time ago.

Policy uncertainty has been at the heart of the market's recent struggles, as that uncertainty has triggered waves of angst about economic and earnings growth prospects. The IMF spoke to these matters today, noting that "global downside risks are intensifying, with trade uncertainty weighing on all regions and possibly triggering broader financial instability."

In recognition of those risks, the IMF said it expects US GDP growth to slow to 1.8% in 2025. Separately, the IMF expects inflation to remain elevated, with the 2025 global average at 4.3% and decelerating to 3.6% in 2026.

Notwithstanding the IMF's reduced growth outlook, stocks are on the rebound, aided by an understanding that growth concerns have already made their way into market pricing. What remains to be seen is whether the markdown has gone too far or not far enough. The economic data in the coming months will be providing the answer. For more on that issue, be sure to read the column published to The Big Picture on Briefing.com last Thursday.