The stock market endured immense volatility throughout 2022 due to concerns about high inflation, the Fed’s incessant interest rate hikes to control it, Russia’s invasion of Ukraine, and increasing recessionary fears.
Although the Fed delivered a smaller rate hike last month, hotter-than-expected job additions and a higher wage rate in November have dampened investors’ sentiment. With the Fed keen on continuing its hawkish stance, it seems unlikely that the economy will achieve a soft landing and markets will return to stability anytime soon.
