Investors Brace for Continued Market Turbulence Amid Economic Uncertainties

Amid fears of a prolonged stock market selloff driven by U.S. recession concerns and the Bank of Japan's unexpected rate hike, major investors are cautious, with many reducing their equity positions. The volatile economic climate, further spurred by weak U.S. jobs data, has replaced the usual buy-the-dip mentality with apprehension.

Amid escalating fears of a prolonged stock market selloff triggered by U.S. recession concerns and a surprising rate hike from the Bank of Japan, major investors are exercising caution. Many have decided to reduce their equity positions, wary of the current volatile economic climate.

This shift in sentiment arises as the customary buy-the-dip mentality fades, giving way to widespread apprehension. Contributory factors include signs of weakness in the U.S. jobs market and global consumer trends, leading asset managers to maintain a defensive stance.

Michael Kelly of PineBridge Investments noted that the next two months are expected to be highly volatile. Meanwhile, the Federal Reserve's upcoming decisions and China's economic performance remain critical risk factors for market participants.

(With inputs from agencies.)