Concerns over high inflation and the Fed’s aggressive monetary tightening kept the market under immense pressure in the year's first half. However, equities have rebounded since July thanks to better-than-expected corporate earnings and the expectation that inflation will cool off.
The U.S. consumer price index rose 8.5% year-over-year in July, slightly declining from the 40-year high level. However, this level is still uncomfortable for the policymakers, indicating the possibility of continued aggressive rate hikes.
