BMO Capital Markets' Brian Belski isn't buying the story that a recession is coming, and thinks US stocks should still rally this year.

The mood in the markets brightened after US Secretary State Antony Blinken and Russia's foreign minister agreed to meet for further talks.

"It's still all fairy dust and very vulnerable to higher interest rates," JPMorgan strategist David Kelly said of cryptocurrencies.

"The macro backdrop this year is considerably more challenging than in 2021," Goldman analysts said as they cut their S&P 500 target.

UBS thinks the S&P 500 will rally to 4,850 by the end of the year — an 8% increase from Monday's closing level.

Stock market investors were looking towards Thursday's key inflation data, while continuing to digest relatively strong earnings reports.

A hawkish Fed and Chairman Jerome Powell's greater concern over inflation have sent equity investors into a tailspin.

Stock market investors will interrogate Federal Reserve Chair Jerome Powell's every word for clues about monetary policy when he speaks later.

The crypto billionaire said Thursday this is a bear market, and told people to sell rallies and not buy dips.

Ethereum tumbled to below $3,000 as confidence evaporated from the cryptocurrency market Friday.

"You're likely to see quite a different stock-market leadership to the one that's been so familiar over the past decade," Hugh Gimber told Insider.

Bond yields have risen sharply this year so far, whacking crypto prices and speculative tech stocks. Mike Novogratz said the trend is set to continue.

The slide in tech stocks also looks set to resume Tuesday, as investors bet on aggressive Fed tightening and oil's rally spurs inflation fears.

"I've gotta be in real assets as interest rates are going to go up," Jeremy Siegel said.

US inflation soared to a 39-year high of 7% in December, data showed on Wednesday, but stocks were unfazed.

A strong US labor market and rising wages mean the Fed is likely to hike rates four times between March and December, Goldman analysts said.

The Fed could pull back its support even faster than expected, spelling trouble for risky assets like bitcoin.