Recovery is “intact” but stocks still face “myriad of risks”

The S&P 500 slipped 0.1 percent on Tuesday.

However, many analysts remain optimistic on the prospects for stocks.

“We believe that the momentum toward reopening and recovery is intact and that there is further upside to equities,” wrote Mark Haefele, chief investment officer of global wealth management at UBS, in a note.

Wells Fargo strategists wrote in a note that “strong economic and earnings growth and relatively low rates through 2022 should support higher equity prices and sustain the bull market”.

Still, other analysts noted mounting risks for stocks.

Charles Schwab chief investment strategist Liz Ann Sonders said: “Are there a myriad of risks out there that at some point in time could be a risk factor that could lead to more than a 3% or 4% pullback? Absolutely.”

Sonders said that “sadly, the market is still at the mercy” of COVID-19.

BITG head of equity and derivatives strategy Julian Emanuel said that consumer confidence “has already rolled over” and suggested that investors “be prudent”.