The monthly consumer price index increased 8.6% year-over-year in May, registering the highest rise since December 1981. The hot inflation report has further fuelled concerns about the Fed’s aggressive interest rate hikes and a potential recession among investors. Wall Street suffered its worst week since January following the inflation report released last Friday. The S&P 500 index has declined 18.2% year-to-date, while Dow Jones has plunged 13.6% year-to-date.
However, the recent market sell-off has provided a promising opportunity for investors to invest in fundamentally solid stocks trading now at attractive valuations. Given their robust financials, healthy cash flows, and solid growth attributes, these stocks are expected to recover in the coming months.
