Intensifying geopolitical tensions, worsening supply chain conditions, and the possibility of a recession due to the Fed's tightening of monetary policy have led to the stock market experiencing a massive sell-off over the past few weeks. The market is expected to remain turbulent ahead of the fresh inflation data. According to economists, high inflation reading is expected, but it should be moderate from the 8.5% year-over-year pace of March.
In addition, last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow plunged 0.21% and 0.24%, respectively. According to Bank of America, the S&P 500's massive sell-off in the past week has increased this year's correction for the broad index, and it's likely to sink even lower before finding a bottom and rebounding. However, the market downtrend has led to many quality stocks trading at attractive valuations. Since value stocks tend to outperform in an inflationary environment, it could be an opportune time for investors to invest in such stocks.
