Wall Street is in a correction mode, with major benchmark stock indexes consistently ending the weeks in the red on concerns over the consequences of the central bank’s aggressive monetary policy tightening to tame the surging inflation.
The S&P 500 lost 5.8% last week, marking its biggest weekly loss since March 2020, when the market was witnessing a free fall due to the COVID-19 outbreak. Last week, the Fed hiked interest rates by 75 basis points, the highest increase since 1994, and indicated continued tightening ahead. Many analysts expect the rate hikes to push the economy into a recession.
