The stock market witnessed significant selling pressure following the Fed’s second interest rate hike this year. Since Fed officials seemed convinced of the necessity of more aggressive hikes for curbing lingering core inflation, investors feared the possibility of the economy slipping into recession. With the expectation that the Fed will try to prevent possible future stagflation while deciding the future interest rate hikes, the major benchmark stock indexes ended last week with a modest rally.
Goldman Sachs' Peter Oppenheimer also opines that the market could bounce back gradually, with equities seeming attractive for medium- to long-term buyers. The Dow Jones Industrial Average managed to gain marginally last Friday.
