The stock market reacted negatively after Federal Reserve Chair Jerome Powell reiterated a tough stance against inflation, spurring investors to weigh the implications of higher interest rates in the upcoming months. The market struggled to maintain its recovery rally as the major indexes plummeted for a second week erasing the August gains.
Concerns over the possible continuation of aggressive interest rate hikes, inverted yield curve, the ongoing energy crisis in Europe, and signs of an economic slowdown in China are expected to keep the markets volatile in the near term.
