Deutsche Bank Research Team highlights a recurring market pattern in 2026 characterized by sharp sell-offs followed by rapid recoveries. Despite various causes for these sell-offs, they have not resulted in lasting damage, with the S&P 500 showing resilience. The report emphasizes the importance of distinguishing between headline noise and a strong macroeconomic backdrop, noting that significant downturns typically align with negative macro outlooks, which are not currently evident.

2026 market patterns and resilience

"2026 is only a few weeks old, but there’s been a repeated market pattern of sharp sell-offs that quickly recover, sometimes within hours."

"Although these have had a variety of causes, the consistent theme is they fail to inflict lasting damage, despite initial fears that it might finally be the start of a larger sell-off."

"Clearly, we’ve seen large sectoral moves, particularly in the software space, but the aggregate indices have been fairly steady overall."

"But it’s important for investors to separate headline noise from an otherwise robust macroeconomic backdrop."

"When we’ve historically seen more durable market downturns, it’s consistently coincided with a fundamentally negative reassessment in the macro outlook, which we haven’t yet seen today in any meaningful sense."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)