A slowdown in inflation and the Fed reducing the magnitude of its rate hike to 50 basis points this month have made investors more optimistic about a year-end rally. As we approach the year-end, there is a 77.9% chance of a ‘Santa Rally.’
However, the Fed has raised its benchmark interest rates to the highest level in 15 years and indicated to continue raising rates through next year, thereby fueling recession fears. Oppenheimer’s chief investment strategist John Stoltzfus, said, “We’re actually headed out of the woods, but we are not out of the woods yet.”
