Equity markets (^DJI, ^IXIC, ^GSPC) are recovering following a three-day plummet driven by recession fears. The tech sector bore the brunt of the downturn, with mega-cap tech companies losing about $1 trillion in value over this period. Morgan Stanley senior equity portfolio manager Aaron Dunn joins Morning Brief to share his market outlook.
Dunn observes that despite the market being "in correction mode," an overall uptrend persists. He identifies the main issue for markets is the long-standing "concentration of all these indices," with tech stocks driving the majority of gains. However, Dunn warns that if these stocks become volatile and fall, "the downside will occur" throughout markets.
"I think one of the things to watch, for me, is global liquidity getting a little better as you have a… central bank easing cycle coming," Dunn told Yahoo Finance. He suggests that as global central banks ease monetary policy, "that should help the economy."
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