Markets Remain Resilient Despite Rate Hikes as Investors Bet on Soft Landing

• Financial markets have weathered rate hikes well, with key risk measures at 2021 euphoria levels • S&P 500 near records despite higher inflation readings that caused some bond sell-offs • Global Financial Stress indicator at lowest since April 2021 amid AI boom and strong US economy • Corporate profits proving resilient, keeping "soft landing" hopes alive and supporting risk appetite • Investors increasingly bullish, with equity inflows hitting 2022 highs and hedging demand very low