Besides Q3 corporate earnings showing signs of an inflation-led and interest-rate-induced slowdown, a fourth consecutive 75-bps rate hike announced by the Fed last week has dampened investor sentiment.
Since inflation is still hovering close to its multi-decade high and far from the point at which the Fed would consider a halt or reversal of its hawkish stance, borrowing costs are expected to rise, and demand is set to soften further, putting further pressure on business margins.
