The Federal Reserve’s hawkish stance has helped the economy to witness a slight decline in inflation last month. Moreover, better-than-expected corporate earnings and fiscal policy support have renewed investors’ confidence in the market.
But the possibility of the central bank signaling another 75-basis-point interest rate hike in its Jackson Hole conference and related recession fears are expected to keep up the volatility. The weakening economic data from China and soaring inflation in the UK should also keep the market under pressure.
