The stock market has endured a challenging year, with the Dow Jones Industrial Average (DJIA) declining 12.2% year-to-date to close the last trading session at 31,899.29. The S&P 500 (SPX) and the Nasdaq Composite (COMP) have fallen 16.8% and 24.3% year-to-date to close the last trading session at 3,961.63 and 11,834.11, respectively.
The correction in the stock market could be attributed to the war between Ukraine and Russia, supply chain disruption, multi-decade high inflation, and the Fed’s aggressive interest rate hikes. After hiking the benchmark interest rates thrice this year, the Fed is expected to hike the interest rate by 75 basis points this week. This is expected to enhance the chances of a recession.
