A year on, the Fed is still increasing interest rates in its battle to bring inflation down. Minutes from the Fed’s policy meeting show that the Fed officials are keen on raising interest rates. This could keep the stock market under pressure this year. In this scenario, let’s see why it could be wise to avoid Shopify Inc. (SHOP), Snap Inc. (SNAP), SoFi Technologies, Inc. (SOFI), and Digital World Acquisition Corp. (DWAC).
A key inflation figure that the Fed closely tracks is the Personal Consumption Expenditure (PCE). It rose 0.6% sequentially and 5.4% year-over-year, indicating that inflation was still at elevated levels and the Fed has its work cut out. In addition, the jobs report surprised Wall Street as unemployment fell to 3.4%, and nonfarm payrolls increased by 517,000, coming way above estimates of 187,000.
