However, options market data shows elevated implied volatility, hinting that price swings near earnings release could be sharp. The equity markets are priced for a soft landing. This means that even the fear of a mild recession might trigger a significant equity-market correction. The broader economic data aids the soft-landing thesis, but a slowdown consistent with soft landing might still lead to a downturn, explains Chief Investment Strategist of Russell Investments. As of now, a soft landing appears to be a more likely outcome. Inflation continues to decline, growth in wages has been moderating, and labor-market pressures are cooling. Importantly, the US Fed started easing before the clear signs of economic stress emerged. We have seen 4 institutional investors add shares of $SMCI stock to their portfolio, and 23 decrease their positions in their most recent quarter. Fund managers evaluating the "SMCI stock price forecast" are factoring in new data center ventures in Asia-Pacific, which could diversify revenue streams further. Expansion into these markets may buffer U.S. economic cyclicality.
