During the annual policy speech at Jackson Hole last month, Fed Chairman Jerome Powell indicated that the Fed would continue tightening its policy to fight the record-high inflation. He warned that the economy would face “some pain,” prompting markets to sell off on increased recession fears.
Furthermore, investors expect more market volatility as Wall Street analysts cut their corporate-earnings expectations. Morgan Stanley lowered its earnings estimates for S&P 500 companies yesterday, citing declining profit margins in the upcoming quarters.
