This year, the stock market posted the worst first half in more than 50 years. Moreover, the Consumer Price Index (CPI) accelerated 9.1% year-over-year in June, exceeding the 8.8% Dow Jones estimate. Therefore, the Fed is expected to increase the benchmark interest rates even more aggressively, exacerbating recession risks.
Furthermore, U.S. business activity declined in July for the first time in nearly two years, pressured by a sharp slowdown in the service sector, painting a gloomy picture for the economy. The U.S. Composite PMI Output index plunged more than expected to 47.5 this month, compared to a final reading of 52.3 in June.
