The Fed’s continued rate hikes and the recent turmoil in the financial system have increased the likelihood of a recession this year. Amid an uncertain macro environment, analysts expect a stormy earnings reporting season. We think that investors should avoid struggling stocks TuSimple Holdings Inc. (TSP), Ra Medical Systems, Inc (RMED), and Agrify Corporation (AGFY), which are expected to release their earnings reports this Wednesday.
The Federal Reserve raised interest rates by a quarter-point, balancing the fight against stubborn inflation with the recent turmoil in the banking sector. The Fed’s move marked the ninth-rate hike and lifted the federal fund rates to a range of 4.75%-5%. Fed officials feel that “some additional policy firming” may be needed and expect the year-end 2023 policy rate at 5.1%.
