The stock market is already experiencing high volatility and is headed for further losses in the second half of the year.
Since January, stocks have dropped over 15% and the S&P 500 is down over 17% year-to-date
The economy is still struggling, but the Fed is on track to hike interest rates even more aggressively than previously.
While investors have begun selling in earnest, it is too early to call the bottom.
However, the recent pullback in stock portfolios is a sign of a souring mood on Wall Street and could be a preview of ailing corporate earnings.
More than $8 trillion has been knocked off the market so far this year, and stocks are poised to continue falling until the Federal Reserve signals a change in policy or inflation.
A recent consumer price report showed that US consumer prices rose unexpectedly in August, but the annual rate of inflation has remained stubbornly high at 8.3%.
This could lead the Fed to raise interest rates even more, a fact that investors are worried about.
This could lead to further weakness in the US economy. Meanwhile, the Nasdaq has fallen by almost 4%, wiping out a week's worth of gains.
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