As inflation fears slowly ease, green shoots of economic hope are popping up

THE stock market started pricing in a recession more than 6 months ago, and now its telescopic vision is looking beyond a winter slowdown to the green shoots of economic revival set to pop up in the spring.

Confirmation of an economic slowdown is just emerging. A slump in digital advertising; layoffs from some of the companies that boomed the most during the pandemic, such as Microsoft and bitcoin exchange Coinbase Global; and a plunge in mortgage applications all justify the bear market in the broad S&P 500.

Some of the root causes of the recession are already on the turn, however. Inflation and central-bank policy were the spoilers for the expected post-pandemic boom. Now the threat from both is diminishing.