9 June 2025 | S&P 500

US stock market excludes possibility of recession — The Leuthold Group

US stock market excludes possibility of recession — The Leuthold Group

According to a study by The Leuthold Group, the US stock market seems to be ruling out the risk of a recession in the country. Traders' actions indicate their confidence in the further growth of the American economy.

The analysts' conclusion is based on the ratio of cyclical and defensive stocks in the S&P 500 index. This is a key indicator that compares sectors that are most sensitive to economic fluctuations with more stable industries. The first group typically includes consumer products and commodities, while the second consists of utilities, healthcare, and essential goods.

Cyclical stocks usually trade at a discount during recessions because their earnings are more vulnerable to economic downturns. Meanwhile, the value of defensive assets remains rather stable, so market participants are willing to pay a premium for them.

In May, the ratio reached a record high of 1.19, indicating a 19% premium for cyclical sector stocks. In contrast, during the crises of 2000, 2008, and 2020, these stocks traded at a discount due to fears of a recession. According to The Leuthold Group experts, the US stock market is currently ignoring the threat of an economic downturn.

Elena Dorokhina MarketCheese
Period: 20.03.2026 Expectation: 1200 pips
Selling silver with $72 in sight
06 March 2026 44
Period: 31.05.2026 Expectation: 500 pips
EURUSD selloff targets 1.11000
06 March 2026 32
Period: 13.03.2026 Expectation: 1560 pips
GBPUSD eyes key resistance before resuming downtrend
06 March 2026 35
Period: 30.06.2026 Expectation: 14400 pips
Selling silver amid declining production in US and Europe
06 March 2026 32
Brent sell
Period: 13.03.2026 Expectation: 700 pips
Brent's run loses steam as Russian crude reenters market
06 March 2026 57
Period: 12.03.2026 Expectation: 22900 pips
Investing in ETHUSD on pullback before flat trend ends
05 March 2026 59
Go to forecasts