June Consumer Price Index (CPI) exceeded expectations by accelerating 9.1% from a year ago, registering its highest since 1981. The latest inflation data indicates that the Federal Reserve will hike interest rates more aggressively to bring the prices down, exacerbating the odds of the economy slipping into a recession.
Due to the challenging macro environment, the S&P 500 index has declined 20.2% year-to-date, while the Nasdaq Composite and Dow Jones have lost 28.1% and 15.3%, respectively. However, the market’s continued decline provides excellent buying opportunities to investors as stocks possessing solid fundamentals are currently trading at attractive prices.
