"If the downturn doesn't prove to be severe, equity markets could stabilize even as economic data and earnings underwhelm," said Angelo Kourkafas, an investment strategist at Edward Jones in St. Louis, Missouri.
Canada's economy is likely to be particularly sensitive to higher rates after households borrowed heavily during the pandemic to participate in a red-hot housing market.
"While corporate earnings will likely continue to decline for many industries, we see continued growth in earnings across most commodities," said Arthur Salzer, chief executive officer of Northland Wealth Management.
Adding to investor enthusiasm, the TSX last Wednesday closed above the 200-day moving average for the first time since May 4.
(Other stories from the Reuters global stock markets poll package:)Reporting by Fergal Smith; polling by Susobhan Sarkar and Sarupya GangulyOur Standards: The Thomson Reuters Trust Principles.