The stock market made a solid comeback in Friday’s trading session, with S&P 500, Dow Jones, and Nasdaq rising more than 3%, 2.7%, and 3.3%, respectively. However, S&P 500 is down around 18% year-to-date and is on its path to its worst first half of any year since 1970. The Fed’s monetary policy tightening to tame the multi-decade high inflation is primarily responsible for the market slump.
Timothy Braude, global head of OCIO at Goldman Sachs Asset Management, said, "We don't expect the choppiness and volatility we've seen over the first half of the year to subside." The Federal Reserve increased interest rates by 0.75 percentage points earlier this month and is expected to raise the rates further in the next couple of months.
