Growing concerns over the Federal Reserve’s aggressive rate hikes later this year to combat high inflation, escalating sanctions on Russia upon its continued invasion of Ukraine, detection of a new COVID-19 variant, and deepening supply chain constraints have been causing immense volatility in the stock market.
As these factors are expected to keep the market volatile in the near term, large-cap stocks should gain significant investor attention because of their ability to generate stable returns irrespective of the market conditions. Moreover, the ongoing efforts to address supply chain issues and increased focus on enhancing domestic production should benefit large-cap stocks more than their smaller counterparts in the coming months. Investors’ interest in this space is evident from the SPDR S&P 500 Trust ETF’s (SPY) 4.7% returns over the past month.
