Since last year, the stock market has faced many macroeconomic challenges. The Federal Reserve has raised the interest rates several times since last year to bring down inflation which had climbed to a 40-year high. Last week, The Fed raised the short-term interest rates by a quarter of a percentage point, bringing the benchmark rate to a new range of 4.5% and 4.75%, the highest level since October 2007.
A slowing inflation essentially led to a decline in interest rate hikes. The December consumer price index (CPI) showed a 6.5% year-over-year rise and a 0.1% decline sequentially, respectively, marking the sixth consecutive month of slowing annual inflation.
