U.S. stocks rallied yesterday after notching seven weeks of continuous losses. The S&P 500 recovered after almost entering a bear market territory during Friday's session. The index climbed 1.9%, while the Dow Jones and Nasdaq composite rose nearly 2% and 1.6%, respectively. This move came after President Biden commented that he was considering relaxing some tariffs on Chinese goods that had been imposed during the prior administration.
However, the stock market has been underperforming since the beginning of the year due to several macroeconomic factors. And despite yesterday's rally, the Fed's hawkish stance to tame the surging inflation and fears of a possible recession could keep the stock market under pressure. Moreover, continued geopolitical uncertainties and rising energy costs could increase market volatility. According to "Shark Tank" star and Cyderes CEO Robert Herjavec, the U.S. stock market will plunge 20%-30% even further before hitting bottom.
