The stock market remains under pressure on investors’ concerns over multi-decade high inflation, little measurable progress on ending the Ukraine-Russia war, and the potential for a recession. The major stock market indexes tumbled last week. While the S&P 500 lost 2.7%, the Dow Jones Industrial Average dropped 1.7%, and the Nasdaq Composite lost 3.7%.
Recently, Nomura predicted that the Federal Reserve would hike interest rates by 75 basis points in June and July. This news fostered further concern among investors, fueling immense market volatility. However, according to The Leuthold Group's James Paulsen, a likely peak in inflation over the past few months means investors should start buying stocks. Also, investors should take advantage of this market downturn and invest in stocks that have the potential to generate long-term gains based on their solid fundamentals.
