After a disappointing first half of the year, the stock market has recovered significantly since July. Better-than-expected corporate earnings, a red-hot-job market, improved consumer sentiment, and a slight decline in the consumer price index last month have driven investor confidence in the market.
However, some analysts remain skeptical about the market’s momentum as soaring inflation and monetary tightening risks persist. Minutes from the Federal Reserve’s recent policy meeting indicate that the central bank would continue with the interest rate hikes until inflation comes down to its target level. Therefore, the market is expected to remain under pressure.
