The stock market has been under pressure since the beginning of this year, driven by the impending interest rate hikes, rising bond yields, and an increasing conflict between Russia and Ukraine. In response to Russia’s invasion of Ukraine, the U.S. and European nations are isolating Russia through various new sanctions. This has led to increased stock market volatility, as evidenced by the CBOE Volatility Index’s 92.5% rise year-to-date.
Because the Fed plans to hike benchmark interest rates this month, the market is expected to remain volatile in the near term. Furthermore, with initial talks between Russia and Ukraine so far yielding little, the geopolitical uncertainties are expected to mount.
