Fears of a recession have been mounting, especially since the Federal Reserve announced its third consecutive interest rate hike of 75 basis points. With the PCE inflation index showing that inflation was much stronger than expected in August, further aggressive rate hikes by the central bank are inevitable.
As investors increasingly worry about an uncertain economic outlook, they are liquidating their stocks, and the market seems stuck in a firm bear grip. Moreover, the market selloff is expected to continue in anticipation of businesses falling short of third-quarter earnings estimates.
