Broad equity indexes remain well above their lows of mid-March and have been boosted most recently by incoming information on first-quarter earnings that market participants appear to view as generally positive. In contrast, six weeks after the beginning of the war, we have only limited readings on broader economic conditions, and that information has been mixed.
Households appear to have become somewhat less apprehensive about the economic outlook in recent weeks, though reports from businesses have not exhibited a similar improvement in tone. Consistent with this, the persistent high level of new claims for unemployment insurance suggests that firms may still be finding it possible to meet their customers' tepid increases in demand with a leaner workforce.