Global Equities Weather Recession Concerns, Find Stability in H1 2023
Dalal Street Investment Journal|July 17, 2023
The first half of 2023 witnessed a series of noteworthy events in global equity markets. It encompassed a remarkable upswing in tech stocks, driven by the influence of artificial intelligence (AI). Additionally, there was substantial decline in the commodity market, and a profound banking crash, arguably the most severe since the Lehman Brothers crisis
Global Equities Weather Recession Concerns, Find Stability in H1 2023

As we ventured into the first week of a new quarter, markets experienced a slight stumble following a strong performance in the first two quarters of 2023. The S&P 500 displayed a minor decline last week, and small-cap stocks fell behind their large-cap counterparts in terms of performance.

However, unlike the market turmoil caused by interest rates in 2022, the current situation has been characterized by a prevailing belief that the end of the economic cycle is approaching. Despite this sentiment, the first half of 2023 witnessed a significant rally in the global stock market, amounting to a remarkable USD 6 trillion or 12 per cent increase in overall value. However, there is an underlying sense of caution as this surge appears to be concentrated in a select few, raising concerns about its sustainability.

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