Breaking the bad news cycle

<p>With the S&P 500 up 20% since October 2022, another bull market has begun. To date, it has been led by a narrow group of technology companies, but there are signs it may broaden out in the months to come.</p> <p>This may create momentum for global stock markets in the second half of the year, even as a recession looms. Consensus expectations are now for a less severe recession than was expected a year ago. Falling expectations of peak US interest rates have also helped stocks to rally too.</p> <p>The weaker dollar may also be a swing factor for investors. Dollar depreciation is usually indicative of an improving global growth backdrop; it tends to depreciate at times of greater certainty on the economic outlook. These factors may combine to create a better outlook for stock markets in the remainder of the year.  </p> <p> </p>