“We continue to think the stock market faces a big test in the months ahead on the economy,” Calvasina said. RBC expects the stock market may give back some gains without signs that the first quarter’s “rough patch” is ending or, if labor market signals deteriorate.
RBC also views expectations for a rate cut in 2019 as too “optimistic,” and worries “that if the Fed does cut before the year is up, investors will be spooked by the reason for the move.”
This article was provided by Bloomberg News.