Concerns over high inflation, the Fed’s aggressive interest rate hikes, and an economic slowdown have kept the stock market under immense pressure this year. Yesterday, the 10-Year U.S. Treasury yield rose 3.3% after the European Central Bank increased the interest rates by 75 basis points.
Investors are concerned about a possible recession, as policymakers signal to continue raising rates ‘for as long as it takes’ to temper the rising costs. LPL Chief Equity Strategist Jeffrey Buchbinder said, “The combination of peak hawkishness from the Fed and the frustratingly slow pace at which inflation is cooling could make this a tough month.”
