Despite the recent slide in U.S. equities, Deutsche Bank analysts contend that the decline is not a harbinger of either a broad corporate slowdown or an impending recession.

In a note to clients on Tuesday, DB acknowledged that market weakness may unnerve executives but argued that current conditions differ from past downturns linked to more severe economic disruptions.

• “The upshot is that while the U.S. equity market sell-off will undoubtedly make many CEOs nervous, it does not have the hallmarks of prior sell-offs that were actually associated with a material dip in corporate and ‘uncontrollable’ economic factors”

DB pointed to data suggesting that most companies have remained resilient despite heightened economic uncertainty.

• “Even though the market is legitimately worried about very high levels of economic uncertainty at present, it is premature to predict an extended pause in corporate expansion activity”

Deutsche Bank maintains its outlook for a strong rebound in business activity later this year, reiterating expectations for a material pickup in corporate expansion in the second half of 2025.

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