The stock market has been under pressure due to surging inflation, which accelerated 9.1% year-over-year in June, exceeding the 8.8% Dow Jones estimate and the Federal Reserve’s aggressive interest rate hikes. The central bank is expected to raise the interest rates by 75 basis points in its meeting this week, raising the odds of the economy slipping into a recession.
Also, U.S. business activity decreased in July for the first time in approximately two years, with a sharp slowdown in the service sector. Steve Sosnick, the chief strategist at Interactive Brokers, said, “don’t be fooled” by short rallies, as these recent increases were just a part of the market where “volatility works in both directions.”
