Lindsey Bell, Ally’s chief markets and money strategist, said in an email on Tuesday the big unknown is how deep or widespread the stock market slowdown will be. “With a 20% decline in the first half of the year, stocks are pricing in what could be a mild to medium sized recession,” she said.The bond market is also indicating tough times ahead. The price of short-term debt was suddenly more expensive on Tuesday than longer-term debt, an unusual occurrence that tends to happen when investors are bracing for a recession. Economists also will be closely tracking corporate earnings this week. Eighteen companies in the S&P 500 will release quarterly results in the days ahead, providing crucial data into how businesses are coping with rising prices and borrowing costs.
