Although the July inflation report showed signs of slowing price increases, other macroeconomic issues, including the rising geopolitical concerns and recession fears, are expected to keep the market under pressure. The CBOE Volatility Index gained 19% year-to-date.
Moreover, the Fed is expected to declare another sharp rate hike in September, raising recession fears. St. Louis Federal Reserve President James Bullard expects approximately a 150 bps rate hike in 2022.
