Economy to see “continued growth” but market faces “a lot of volatility”

Markets were mostly lower on Monday.

The S&P 500 fell 0.1 percent and the STOXX Europe 600 tumbled 1.5 percent. However, the Shanghai Composite rose 0.4 percent.

Expectations of higher interest rates kept markets under pressure, with Randy Frederick, director of trading and derivatives at Schwab Center for Financial Research, saying that “there’s like an 80% probability” that the Federal Reserve will raise interest rates in March.

Economic growth, though, is expected to be resilient, with Shannon Saccocia, CIO of Boston Private Wealth, saying that “from an economic standpoint we are looking at continued growth over the next several quarters”.

Similarly, JPMorgan Chase CEO and chairman Jamie Dimon told CNBC that while it is “possible that inflation is worse than they think and they raise rates more than people think”, the economy could see “the best growth we’ve ever had this year, I think since maybe sometime after the Great Depression”.

“The market is different,” Dimon said however. “We’re kind of expecting that the market will have a lot of volatility this year as rates go up and people kind of redo projections.”