Since the beginning of the year, the stock market has experienced intense selling pressure due to various macroeconomic and geopolitical factors. Last week’s hotter-than-expected May inflation data has led to a fresh round of selling in equities.
The consumer price index rose 8.6% in May, marking its highest increase since December 1981. This has led to the S&P 500 entering bear market territory after falling 21% from its January peak, while the Dow Jones Industrial Average has fallen nearly 17% from its record high. The Nasdaq Composite is down more than 33% from its November 2021 high.
