Even though the consumer price index rose 8.5% in July, slightly declining from the 40-year high, it still remains elevated. The high inflation and the better-than-expected economic data might give the Federal Reserve more reasons to hike the interest rates aggressively until price increases return to the central bank’s target level.
The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite closed last week with 1.2%, 0.2%, and 2.6% losses, ending their four-week winning streak. Concerns over the potential economic slowdown in the United States and the weak global economy could keep the market under pressure in the near term.
