The stock market has witnessed a massive sell-off on worries over the Federal Reserve’s aggressive interest rate hikes to tame the high inflation. Amid efforts to bring down the rising inflationary pressure, the central bank raised the interest rates by 75 basis points last month.
Moreover, increasing odds of a recession have spooked investors, leading to high market volatility. According to Morgan Stanley, the S&P 500 has yet to price in a full-blown economic recession. The S&P 500 witnessed its worst first six months since 1970.
