STORY: “The obsession over inflation, CPI numbers or unemployment claims or the leading economic indicators… is what people have been focusing on for the last year,” said Deshpande. “The question is what flips the script?”
The answer, he thinks, could be corporate earnings, which Deshpande said are stabilizing due to many companies having cut costs in preparation for a possible recession.
“Stock markets generally follow earnings,” Deshpande notes, adding that solid earnings could “break the chain” of big swings in the market that often occur after economic data releases or comments from Fed officials.
