Since the beginning of the year, the major stock market indexes have been highly volatile on concerns over the Fed’s decision to raise the interest rates multiple times this year and a worsening situation between Ukraine and Russia.
The consumer price index for January increased 7.5% year-on-year, beating the Dow Jones estimate of 7.2%. This was the index’s highest increase since February 1982 and may compel the Fed to raise the interest rates aggressively in March, which could lead to further stock market volatility. However, as history suggests, the markets do not remain in the oversold territory for long periods and tend to rebound after a significant correction.
