Concerns over the Fed’s aggressive interest rate hikes to control surging inflation, geopolitical instability, and a potential recession have been driving immense market volatility of late. According to Labor Department data published this Wednesday, the Consumer Price Index (CPI) accelerated 9.1% from the year-ago value in June, exceeding the 8.8% Dow Jones estimate.
Considering the worse-than-anticipated inflation data, the Fed might lift a historic 100 basis-point hike this month to bring down prices. Therefore, the odds of a recession are increasing. These factors are expected to keep the stock market under pressure in the upcoming months.
