The stock market has been under tremendous pressure since the beginning of 2022 due to the Fed’s continued aggressive rate hikes to tame inflation and the increasing possibility of an economic recession. Inflation is persistently hovering around its multi-decade high and shows no signs of slowing down. Analysts expect another outsized rate hike in November as the September CPI report came in hotter than expected.
The macroeconomic uncertainties are weighing on investors’ sentiment, and the market is experiencing a broad-based sell-off. According to JPMorgan Chase CEO Jamie Dimon, the S&P 500 could further fall significantly. He warned that a “very, very serious” mix of macro-economic headwinds could tip the global economy into a recession by mid-next year.
