High inflation, higher interest rates, and the threat of a U.S. recession has suppressed investor appetite for stocks this year. Moreover, as China faces its most severe test of the pandemic and fears that it could resume stricter measures to fight COVID-19 are also weighing down the stock market.
Moreover, the Fed approved a fourth consecutive three-quarter point interest rate increase this month, raising its short-term borrowing rate to a range of 3.75%-4% to combat the soaring prices. While inflation showed signs of cooling in October, it’s far from the Fed’s target of 2%.
