Recession fears melt away as bond yield spreads fall to new 2023 lows, suggesting more upside for the stock market

• Recession fears are dissipating as bond yield spreads fall to new 2023 lows, according to Bank of America.
• The decline in spreads reflects rising investor confidence in corporate earnings.
• If earnings are solid, "this would confirm the ongoing rally in US equities and sets us up for further upside," DataTrek said.

The recession fears that were so prominent at the start of the year are beginning to dissipate as bond yield spreads fall to new 2023 lows, according to Bank of America.