Multi-decade high inflation and the Fed’s aggressive interest rate hikes have kept the stock market under pressure lately. The Consumer Price Index (CPI) soared 9.1% from a year ago, surpassing the 8.8% Dow Jones estimate. In response to this, Fed officials have indicated that the central bank will likely raise interest rates by 75 basis points in its meeting later this month.
Mike Wilson, the chief U.S. equity strategist at Morgan Stanley, said, "Counter-trend rally may continue, but make no mistake, we don't believe this bear market is over, even if we avoid a recession, the odds of which are increasing." He also predicted a 36% chance of the U.S. economy tipping into recession in the next 12 months.
