The slightly moderated and lower-than-expected inflation in July 2022 and a red-hot job market have renewed investors’ optimism about the stock market, as evident from the recent gains of the benchmark indexes. Moreover, the higher-than-expected U.S. consumer sentiment in August added to the optimism.
However, the series of better-than-expected economic data could make the Fed maintain its hawkish stance as inflation remains elevated. This and the tensions between the U.S. and China over Taiwan might keep up the market volatility in the near term.
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