At the beginning of the year, the equities market reacted positively to the better-than-expected news as economists and strategists were overly bearish heading into the new year. However, SSgA does not believe the markets will give future outlooks much leeway if it becomes worse-than-expected.
“It seems that markets had been comfortable reacting positively to economic news that had been better-than-expected, but it may not behave as well with neutral or even negative news going forward,” David B. Mazza, strategist, SPDR ETF Strategy & Consulting, SSgA, wrote in the note.
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Max Chen contributed to this article.