Last year, macroeconomic uncertainties kept the stock market under pressure. Furthermore, tech stocks bore the brunt of the market sell-off, which led to the tech-heavy Nasdaq Composite to decline over 25% over the past year.
However, inflation has come down significantly from its peak. The Consumer Price Index (CPI) for December 2022 increased 6.5% year-over-year and decreased 0.1% over the prior month. Post CPI report, a 25-basis-point rate hike is expected at the Fed’s February meeting. A slowdown in the rate hikes could bode well for the stock market.
