The major stock market indexes made a comeback yesterday. The S&P 500 gained 2.4%, while the Dow Jones and the Nasdaq climbed 2.1% and 2.5%, respectively. Despite yesterday’s relief rally, the lingering issues, such as the multi-decade high inflation and the Federal reserve’s upcoming interest rate hikes, are expected to keep the stock market under tremendous pressure.
The Federal Reserve recently raised its benchmark interest rate by 75 basis points, the largest increase in nearly three decades to fight the soaring inflation, and hinted at more aggressive policy tightening ahead. As a result, the S&P 500 lost 5.8% last week, marking its biggest weekly loss since March 2020.
