The Nasdaq Composite, S&P 500, and Dow rose 1.6%, 2.5%, and 1.9%, respectively, in the last trading session. Despite the occasional rallies, multi-decade high inflation, and the Fed’s effort to control it by raising rates are expected to keep the market extremely volatile.
A possible recession may lead to fewer jobs and weak consumer sentiment, weighing on the stock market. The median probability of a recession over the next 12 months stands at 47.5%, up from 30% in June, according to a Bloomberg survey of economists.
