Goldman, JPMorgan Say Markets Pricing in Higher Recession Odds

What You Need To Know

• Equity and bond markets are assigning a 41% probability to a U.S. recession, up from 29% in April, according to Goldman.
• Factors driving the models include market bets on a more aggressive pace of Fed rate cuts and a sharp repricing in Treasurys.
• In the credit and mortgage markets, on the other hand, risk levels aren't signaling much concern.