Stay updated with breaking news from Stock Fall. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
There is a risk high inflation becoming entrenched in the economy, which could bring a long-term downside for stocks and bonds, Deutsche Bank warned.
"Looking back in the past, it's not until inflation and rates peaked that equities have tended to trough in a bear market," Peter Oppenheimer said.
"The Fed is so late, it will probably break something on the way to reducing inflation," Mohamed El-Erian said. He warned of more risks to market stability.
Stocks could stay buoyant amid a recession, but only if the Fed avoids a hard landing, according to Leuthold Group's Jim Paulsen.
US stocks were mixed on Thursday, as investors tried to regain momentum after a blistering rally earlier in the week.