The benchmark S&P 500 index is up 6% year-to-date, and the tech-heavy Nasdaq Composite has jumped 13% over the same period. While the stock market seems to be improving this year, the Fed is expected to keep interest rates high, which might continue to pressure market sentiment.
The U.S. inflation rate rose 6.4% on an annualized basis in January 2023. Despite the moderating price pressures, inflation remains far above the Fed’s 2% target. The CPI increased by 0.5% in January, much higher than the prior month’s increase of 0.1%.
