The stock market has been under considerable pressure since the beginning of the year due to macroeconomic and geopolitical concerns. Inflation reached its highest level in more than 40 years, and the U.S. economy contracted for two consecutive quarters.
In its efforts to control decades-high inflation, the Federal Reserve has maintained its hawkish stance by increasing the benchmark interest rate four times this year. However, inflation still remains high, with the August consumer price index (CPI) rising 8.3% year-over-year. The stubbornly high inflation will likely prompt the Fed to continue aggressive interest rate hikes.
