The stock market has been experiencing tough times of late due to raging inflation, a war between Russia and Ukraine, aggressive monetary tightening by the Fed, rising energy prices, and extended COVID-19 lockdowns in China. The near-term market outlook remains highly uncertain because investor sentiment has taken a beating due to rising recession concerns.
Although stocks rallied post the Fed’s 50 basis points hike in its benchmark rate on Wednesday, the Dow Jones Industrial Average retreated 1,063 points yesterday, marking its biggest single day fall since 2020, while the Nasdaq Composite declined 4.9% to mark its lowest closing since November 2020. The S&P 500 marked its second-worst day this year, closing at 4,146.87, falling 3.5%. And, with the Fed’s hawkish stance, there is little sign of relief in the near term.
