The stock market will likely remain under pressure as the Fed continues to increase interest rates to battle the high inflation, raising investors’ worries about a possible recession. Moreover, the Fed signaled that another big interest rate hike is likely later this month despite the risk of slowing economic growth. The CBOE Volatility Index has gained 54.8% year-to-date.
Furthermore, Timothy Braude, global head of OCIO at Goldman Sachs Asset Management, said, “We don’t expect the choppiness and volatility we’ve seen over the first half of the year to subside.”
