Shares of banks and other financial institutions rose slightly ahead of inflation data later in the week.

The World Bank sharply slashed its growth forecast for the global economy in 2023, marking it out as one of the weakest years outside of the pandemic and the global financial crisis, as persistently high inflation has elevated the risk for a worldwide recession.

In the short term, the stock market will likely be range-bound, but equity markets could slide should economic data turn sour, said one money manager. "The equity market likes to see evidence," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund. "Stocks will go down when the data shows a recession, and we haven't seen that yet." Federal Reserve policy will help decide how the stock market responds to recessionary data, Mr. Di Mattia said.

Cryptocurrency exchange Coinbase Global said it would lay off more than 20% of staff.

Fidelity Investments agreed to its first takeover deal in more than seven years, acquiring stock-plan software company Shoobx. 


 Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-10-23 1733ET