The latest data released by the Bureau of Labor Statistics revealed that the consumer price index increased 8.3% in April, exceeding an 8.1% estimate. The surging inflation has made the Federal Reserve hawkish, and there could be further aggressive interest rate hikes this year. This, combined with the negative GDP growth in the first quarter and the supply chain disruptions expected to stem from the continued war between Ukraine and Russia, has triggered a broad-based stock market sell-off.
Growth stocks have been hammered during this market sell-off, as growth stocks look less attractive to investors in a rising interest rate environment. The sell-off in growth stocks has led to many trading at discounted valuations.
