The stock market ended the last month on a volatile note. On the last trading day of the month, the benchmark indices closed in the red after last week’s rally. The Dow Jones Industrial Average lost 0.7%, the S&P 500 declined 0.6%, and the tech-heavy Nasdaq Composite fell 0.4%. The performances underscore inflation fears and oil market pressures.
In addition, Morgan Stanley (MS) analysts have predicted that last week’s relief rally has limited scope, at least until the risks fade. Market strategist Michael Wilson sees the S&P declining close to 3,400 by the end of the second-quarter earnings season in mid-August, which would mark an approximate 18% retreat from current levels due to inflation and the Fed’s aggressive remedy for it.
