Inflation Figures Influence Global Market Movements

With recession fear looming over most of the global economies, a high inflation reading would further add pressure on the Federal Reserve to step up its already aggressive pace of interest rate hikes

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On the hopes that the Federal Reserve will be able to tame inflation without sending the economy into a recession, most of the Wall Street stocks recovered a large portion of their losses in the past fortnight. The S and P 500 index is down 19.1 per cent from its top in January but had exited the bear market as a result of the gains. The largest sectors of the index – communication services, consumer discretionary, and information technology – were the best performers. Also, a dramatic decline in energy stocks ensured that oil prices slipped below USD 100 per barrel for the first time in almost two months.