The broader market has taken a beating this year due to various macroeconomic and geopolitical headwinds, including sky-high inflation, the economic fallout from Russia’s invasion of Ukraine, and increasing recessionary fears. The S&P 500 is down 16.2% year-to-date, while the Nasdaq Composite has plunged 28.6%.
The Federal Reserve yesterday increased its benchmark interest rate by 50 basis points to the highest level in 15 years, signaling that the fight against inflation is not over despite some recent promising signs. With inflation cooling considerably in November, this month’s interest rate hike broke a string of four straight 75-basis-point hikes.
