Based on the inflation data released by the Bureau of Labor Statistics, the consumer price index increased 8.3% in April, exceeding the Dow Jones estimate of 8.1%. Fed Chair Powell on Wednesday indicated increasing the interest rates aggressively to bring down high inflation. This, coupled with concerns over the Russia-Ukraine war and a contracting U.S. GDP rate in the first quarter of 2022, has resulted in a massive sell-off in growth stocks over the past few weeks.
Despite the risk-off environment, a few growth companies have maintained strong balance sheets, cash flows, and positive analyst sentiments. Furthermore, the recent market downturn has a potential upside because it provides an attractive opportunity to buy financially solid growth stocks at bargain prices.
