During the annual policy speech at Jackson Hole, Jerome Powell’s reiteration of the central bank’s hawkish stance to control inflation warned investors of “some pain” for the economy. Heightened recession fears triggered a broader market sell-off lately.
Furthermore, investors expect more turbulence as Wall Street analysts cut their corporate-earnings expectations. Morgan Stanley lowered its earnings estimates for S&P 500 companies, citing declining profit margins in the upcoming quarters.
