The stock market has been plunging, with the S&P 500, Nasdaq Composite, and the Dow Jones Industrial Average all entering deep correction territory. Decade-high inflation is primarily to blame for this scenario. And the supply disruptions resulting from the geopolitical issues have been one of the key reasons behind the unprecedented inflation.
Investors are worried about the Fed’s aggressive interest rate hikes to bring prices down. Inflation is currently at multi-decade highs, and the April jobs data suggested a tight labor market. Many analysts expect the Fed’s aggressive monetary policy tightening could drive the economy into recession.
