Hello, this is Dylan Butts writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
U.S. markets rebounded on Wednesday as traders signaled hope that Washington and Tehran can eventually reach a ceasefire agreement.
However, overall sentiment on Wall Street is waning, with economists raising their risk assessments of a U.S. recession amid geopolitical uncertainty and potential strains on the labor market.
Wall Street forecasters are raising their expectations of recession, driven in part by the Iran war and inflation risks. Moody’s Analytics now puts the probability of a U.S. recession in the next 12 months at 48.6%, while Goldman Sachs boosted its estimate to 30%.
That comes as a potential resolution or pause in the conflict in the Middle East remains uncertain, though there were some further developments overnight.
