The stock market has had a stormy year, with persistently high inflation and Fed’s monetary policy tightening. Ongoing macro-economic headwinds and the U.S economy contracting by 0.9% for the second straight quarter from April to June have increased the chances of a recession.
“In our view, Fed rate hikes are impacting the economy on cue. We believe that tightening has just started to broadly hit the economy and that our intermediate-term bearish base case remains intact,” Chris Senyek of Wolfe Research said in a note to clients.
