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5 risks that could surprise markets in the second quarter

Stocks are setting up for a solid start to the second quarter, but there are more than a few potential pitfalls that could make investors eager to "sell in May" this year.

After a rip-roaring 10 percent decline in the early in the first quarter, stocks have snapped back, erasing all losses, and the S&P 500 was up nearly 1 percent for the year at 2,063 going into the final day of the quarter.

The second quarter kicks off with March's jobs report Friday, expected to show that job growth continues to grow at about 200,000 a month. Then there is the start of the first-quarter earnings season early in April, expected to be the worst profit decline since the depths of the financial crisis.

There is also the U.S. presidential election, but one of the biggest risk factors cited by analysts is the June 23 "Brexit" vote where British voters will decide whether the U.K. will stay in the European Union. In fact, if the polls appear to signal a positive vote, some Fed watchers believe it would be a factor that could keep the Fed on hold when it meets the week earlier.

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