JPMorgan Chase & Co. says recession fears in stocks acutely tied to America’s economy have spiked to nearly 80%.
The small-cap focused Russell 2000 is now pricing in a 79% chance of an economic downturn.
Other asset classes like the S&P 500, base metals, and five-year Treasuries are also indicating significant chances of an economic downturn.
Corporate bond markets have yet to price in the spiking probability of an economic downturn, which could stress the financial system and lead to bankruptcies.