Rising recession fears with the Fed continuously raising interest rates have kept the stock market under pressure over the past several months. Despite the Fed’s hawkish stance, inflation has persistently hovered around the multi-decade high level.
The stubborn inflation led to the Fed hiking the benchmark interest rate by 75 basis points last month for the third consecutive time. However, September’s consumer price index (CPI) rose 0.4% sequentially, beating economists’ estimates. So, the market expects the central bank to announce another aggressive rate hike in its next meeting. This is expected to keep the stock market under pressure in the upcoming months.
