The Fed’s aggressive policy tightening to control the surging inflation has significantly increased the odds of the economy slipping into a recession. The U.S. economy contracted 1.6% in the first quarter and 0.9% in the second quarter, making many analysts believe that a recession has arrived.
Moreover, the speculations over Speaker Pelosi’s visit to Taiwan worsening a troubled U.S.-China relationship are expected to add to the market volatility. As the economic and geopolitical uncertainties are expected to keep the stock market under pressure, fundamentally weak stocks could keep losing.
