The Federal Reserve’s aggressive monetary tightening to fight multi-decade-high inflation and continuing geopolitical tensions have fostered a massive stock market sell-off this year. The potential for the economy to slip into a recession in the near term has added to investors’ concerns. Consequently, many quality stocks have entered oversold territory.
The U.S. Consumer Price Index (CPI) data report scheduled to be released this Friday will determine the Fed’s future actions to bring prices down. After a slight decline in April, many analysts expect the May inflation data to remain flat. Economists are predicting core inflation of 5.9% for May.
