The stock market has been under pressure due to various macroeconomic and geopolitical factors. Concerns over the multi-decade high inflation, continued Russia-Ukraine crisis, skyrocketing energy and commodity prices, and lingering supply chain disruptions are making investors pull money out of the stock market.
The May consumer price index witnessed the highest increase in four decades, which is expected to bring in further aggressive monetary tightening by the Federal Reserve. Investors have been fearful of the Fed’s aggressive interest rate hikes. Many analysts believe that raising the benchmark interest rates more aggressively may lead to the economy slipping into a recession.
