Multi-decade high inflation, the Russia-Ukraine crisis, rising oil and gas prices, and the possibility of aggressive interest rate hikes by the Federal Reserve drove severe market instability earlier this year. However, investors absorbed the negatives, and the stock market has recovered over the past few weeks. The Dow Jones Industrial Average (DJIA) has gained close to 7% since March 14, 2022.
Furthermore, the U.S. government recently announced it is releasing one million barrels of oil per day from its strategic petroleum reserve for six months beginning in May to help combat elevated energy costs. In addition, robust March jobs growth should provide further stability to the economy. With a string of positive economic reports, the DJIA is expected to continue recovering in the coming months.
