The Federal Reserve’s aggressive rate hikes to curb persistently high inflation has brought upon a stock market downturn this year. The S&P 500 lost 16.9%, while the Dow Jones Industrial Average lost 7.7% year-to-date.
However, with inflation at last showing signs of cooling down, the market has seen a bounce recently. Though experts believe this market optimism would not last as a monetary policy pivot seems unlikely in the near term. As inflation is still far from the Fed’s desired level, the rate hikes are expected to continue.
