This year, the stock market has experienced wild swings on concerns over the Fed’s interest rate hikes to curb the inflationary pressures and declining economic growth. However, the benchmark indexes recovered significantly since July, with several data releases showing the economy’s resilience.
While the decline in the consumer price index in July from the multi-decade high level raises hopes for cooling inflation and a less aggressive Fed, a red-hot job market might prompt the Fed to maintain its hawkish stance to control the still elevated inflation. Therefore, many analysts expect the market to remain volatile.
