After suffering its worst first half in more than 50 years, the stock market started the second half of the year on a positive note. On July 1, the Dow Jones Industrial Average and the S&P 500 rose 1.1% each, while the Nasdaq Composite was up by 0.9%.
The Fed’s hawkish stance on fighting the multi-decade high inflation raises the odds of the economy tipping into a recession. Therefore, it could be wise to consider investing in large-cap stocks that typically survive a market slump better than small and mid-cap stocks because of the underlying companies' substantial market reach, pricing power, and liquidity.
