The Federal Reserve raised the benchmark interest rates by 75 basis points for the second straight month last week to fight the record-high inflation. Moreover, the economy contracted 0.9% in the second quarter after a 1.6% decline in the first quarter. Therefore, the odds of an economy tipping into a recession are increasing.
After posting the worst first half since 1970, the stock market indices staged a relief rally in July. However, the benchmark indexes failed to maintain their momentum in this month's first two trading sessions, with recession fears dominating investor sentiment.
