Last week, the benchmark indices posted their worst weekly declines since late January. Losses widened after the U.S. CPI report came in hotter than expected. The consumer price index rose 8.6% from a year ago. On the last trading day, the Dow fell 4.6%, the S&P 500 declined 5.1%, and the tech-heavy Nasdaq Composite lost 5.6%.
Recently the World Bank warned that the global economy faces a stagflation risk. The bank attributes this risk to a variety of factors such as; sky-high prices coupled with low growth, the war in Ukraine, China’s lockdowns, and the supply chain disruptions. The institution has cut down its global growth projections from 4.1% to 2.9% for this year.
