The stock market has been under great pressure of late due to investors’ concerns about surging inflation, the Russia-Ukraine war, rising energy prices, supply disruptions, and the possibility of aggressive interest rate hikes by the Federal Reserve this year to tame inflation. Furthermore, market volatility is expected to continue because the EU has decided to impose further sanctions on Russia, affecting crude oil supply. Crude oil prices have remained consistently above $100 per barrel since Russia’s invasion of Ukraine. Historically, high crude oil prices have led to recession. Moreover, inflation has been at its highest since December 1981, with the March CPI data revealing an increase of 8.5% year-over-year. In addition, the March jobs data suggested a tight labor market.
Stocks with more than $200 billion in market capitalization are considered mega-cap stocks. These companies are generally characterized by strong brand recognition and extensive market reach. These companies usually possess solid financials and cash balances, which allow them to remain stable even during an economic downturn.
