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Wall Street Journal

Investors Are No Longer Bracing for a Recession

Concerns that President Trump's April "Liberation Day" tariffs could trigger a global recession have eased dramatically, according to Bank of America's latest survey of fund managers. Some key findings: A net 59% of investors polled in July said a recession was unlikely—a big flip from the net 42% who feared one in April. Investor sentiment is at its most bullish since February, driven by improving expectations for corporate profits. Some 42% of investors expect second-quarter company earnings will beat forecasts. Trade wars are still the biggest concern, with expectations for final U.S. tariff rates on other countries rising. Most expect the Federal Reserve to cut interest rates one or two times by year end.