The ongoing Russia-Ukraine war has led to global supply disruptions increasing the prices of crude oil and commodities. In addition, with inflation at its highest level in four decades, the chances of aggressive interest rate hikes by the Federal Reserve are rising. Also, the U.S. economy shrank 1.4% last quarter for the first time since the pandemic-led disruptions struck two years ago.
The Dow Jones Industrial Average (DJIA) sank 4.9% last month as it had its worst month since March 2020. However, corporate earnings and the U.S. job market appear to be in a solid position. Furthermore, consumers and businesses kept spending in a sign of underlying resilience. With a string of positive economic reports, DJIA is expected to recover in the upcoming months.
