Persistently high inflation, significant tightening of monetary policy, geopolitical instability owing to Russia’s invasion of Ukraine, and growing fears of a recession have contributed to a highly uncertain market environment this year. After hitting bear market lows in the first half of this year, stocks rebounded in July, but major market indices retreated again, hitting new lows in September.
Stocks rebounded and witnessed a solid rally in mid-October. Better-than-expected Consumer Price Index (CPI) data for the month indicating signs of inflation cooling boosted investors’ confidence. The stock market racked up its second consecutive month of gains in November as investors became more optimistic that the Fed could deliver a smaller rate hike at its December meeting.
