Last month, the Fed increased its benchmark interest rate by 75 basis points, the most aggressive hike since 1994, to bring down the inflationary pressures. Moreover, the Fed is expected to lift interest rates by 75 basis points this month, followed by 50 basis points in September. The anticipated interest rate hikes are adding fuel to recessionary concerns.
With rising macroeconomic headwinds intensifying the market sell-off over the past couple of months, the S&P 500 lost 19.9% year-to-date. The NASDAQ Composite and Dow Jones Industrial Average have tumbled 28% and 14.7%, respectively, over this period.
