The Fed’s consecutive rate hikes to curb the stubbornly high inflation have triggered a broad market sell-off this year. Interest rate-sensitive and tech-heavy Nasdaq composite have lost 36.7% year-to-date.
Nevertheless, October’s CPI report showed signs of cooling inflationary pressures. Also, the Fed’s indication to increase rates at a slower pace going forward has uplifted investors’ optimism. The Fed is now likely to hike the interest rates by 50 basis points this week instead of the 75 basis points that were launched over the last four consecutive times.
