The stock market has been under pressure due to macroeconomic uncertainty and looming recession fears. The consumer price index (CPI) rose 8.3% year-over-year in August. The rise in inflation was mainly led by increased prices of food, shelter, and medical care services, partially offset by a fall in gasoline prices.
The elevated level of inflation will likely spring the Fed back into action by aggressively hiking the benchmark interest rates. The Federal Reserve is expected to keep increasing interest rates aggressively until it achieves its long-term inflation target of 2%. This is expected to keep the stock market under pressure.
