The stock market has experienced a turbulent year due to macroeconomic and geopolitical headwinds. The economy has been facing its worst inflation in 41 years, with the June consumer price index accelerating 9.1% from the year-ago period, exceeding the Dow Jones 8.8% estimate.
In addition, the Federal Reserve’s aggressive policy tightening to control the surging inflation has made investors concerned about the economy tipping into a recession. According to a Bloomberg survey of economists, the median probability of a recession over the next 12 months is 47.5%.
