The Federal Reserve has announced consecutive rate hikes in an effort to curb reckless inflation. Moreover, the Fed is expected to launch another outsized rate hike next month as inflation shows no signs of slowing down. This has led to widespread bearish market sentiment, and volatility is rife, as is evident from the CBOE Volatility Index’s 78.2% year-to-date gains.
According to the third-quarter CNBC All-America Economic Survey, 68% of Americans think the United States will soon be in a recession, including 9% who believe we are already in a recession. However, a decent start to the earnings season has lifted investors’ optimism, boosting the stocks. Also, according to Oppenheimer’s head technical analyst Ari Wald, markets are nearing a new bottom, and stocks could be poised for a fresh rally.
