The major market indexes have been experiencing high volatility due to investors’ concerns over rising inflation, the possibility of aggressive interest rate hikes, rising energy prices, and very little progress on ending the Ukraine-Russia war.
Concerns over a looming recession have kept the markets under pressure. Inflation data for March suggested a year-over-year CPI increase of 8.5%, its highest gain since December 1981. Furthermore, March jobs data suggested a tight labor market. Worries about crude oil supply disruption due to sanctions on Russia have kept the price of crude oil hovering above $100 per barrel. Historically, high crude oil prices have precipitated recessionary conditions.
