Bank of America identifies major stock market obstacle while market ignores crumbling Empire Fed.

Bank of America's latest fund manager survey shows that investor sentiment deteriorated in May to "the most bearish of 2023" as investors lifted cash balances and got a little more negative on growth. Worried managers are convinced that risk assets will remain "resilient so long as the [economic] landing is soft." The market is taking an Alfred E. Neuman approach to debt-ceiling talks, with 71% expecting the ceiling will be raised by the so-called X date. The top worries for the market are a bank credit crunch and a global recession, followed by high inflation that keeps central banks hawkish.