Yesterday, U.S. stocks closed their worst-performing quarter since the advent of the COVID-19 pandemic. Concerns over surging inflation, logistical disruptions, the possibility of aggressive interest rate hikes, and geopolitical issues have driven this performance. However, overall, the market seems to have absorbed most of the negatives over the past couple of weeks and regained some stability. The progress in peace talks between Russia and Ukraine, primarily, has boosted investor sentiment.
While the possibility of aggressive interest rate hikes by the Federal Reserve could dampen economic growth, a hot job market indicates a steady economic recovery. According to DOW Jones, the unemployment rate is expected to fall to 3.7% from 3.8%. This is expected to boost investor sentiment further.
