The U.S stocks have been witnessing sharp declines on rising concerns over multi-decade high inflation and the prospects of higher interest rates. Steve Sosnick, the chief strategist at Interactive Brokers, said, “don’t be fooled” by short rallies, as the recent increases were just a part of the market where “volatility works in both directions.”
The Federal Reserve is expected to raise interest rates by 0.75 percentage points at its July policy meeting this week. However, U.S. Treasury Secretary Janet Yellen said that U.S. economic growth is slowing. She acknowledged the risk of a recession but said that given the robust employment rates, a downturn was not inevitable.
