U.S. equities plunged into a bear market yesterday as recession fears mounted ahead of this week’s Federal Reserve meeting. The S&P 500 declined 3.9%, registering its lowest level since March 2021. The Dow Jones and the Nasdaq Composite dropped 2.8% and 4.7%, respectively. After the disappointing May Consumer Price Index report released on Friday, Wall Street expects stricter action from the Fed to control the inflationary pressure. And overly aggressive interest rate hikes could push the U.S. economy into a recession.
Amid an increasing possibility of a recession, investing in companies with high resilience to market fluctuations could be wise. The companies involved in businesses, including groceries; health care; beer, wine, and liquor; cybersecurity and IT; children’s goods; and financial products and services, thrive during a recession as they witness relatively inelastic and steady demand.
