The Federal Reserve has raised interest rates aggressively this year to fight the multi-decade high inflation. The stock market slumped on fears of an economic slowdown. Over the past year, the S&P 500 has declined 19.5%, while the Dow Jones Industrial Average and the Nasdaq have fallen 8.8% and 33.6%, respectively.
The stock market might also remain under pressure in 2023, as the Fed’s interest-rate hikes threaten to push the economy into a recession. However, analysts at J.P. Morgan predict the S&P 500 to reach 4,200 by year-end 2023. In addition, analysts foresee better days ahead for the stock market.
