The stock market had a difficult first half this year amid record high inflation levels, the Fed’s hawkish tilt to fight it, and lingering geopolitical issues. Moreover, the policymakers have indicated continued rate hikes until inflation comes down to the 2% target.
However, the benchmark indexes have significantly recovered on the backs of stronger than expected corporate results and a July inflation report showing cooling price increases. The S&P 500 gained 9.1% in the previous month, its highest monthly gain since November 2020.
