The hotter-than-expected August inflation report caused a massive market sell-off last week as investors became concerned over the potential for an aggressive Fed stance. The major benchmark indexes witnessed their worst week since June, with the S&P 500 and Nasdaq Composite losing 4.8% and 5.5%, respectively.
Kathy Bostjancic, the chief U.S. economist at Oxford Economics, believes that the economy is poised to enter a mild recession in the first half of next year. Moreover, shipments company FedEx’s withdrawal of its full-year guidance on concerns over soft global shipment volumes makes investors concerned about a global recession.
