The stock market has suffered immense volatility since the start of the year due to supply chain disruptions, geopolitical uncertainties, and rising inflationary pressures. The Dow Jones Industrial Average fell 16% year-to-date, while the S&P 500 and Nasdaq Composite declined 21.1% and 29.3%, respectively. The S&P 500 lost 5.8% last week, marking its biggest weekly loss since March 2020.
According to economists polled by Reuters, the Federal Reserve will announce another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September. Moreover, Powell said that a recession in the United States remains a "possibility" and commented that a soft landing would be "very challenging" to achieve.
