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Stock Market Taking Unexpected Approach After Fed’s Move

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On Monday, the stock market closed after witnessing turbulence here and there. This led several companies to somewhat decline in their values who were gaining earlier for quite some time. Many experts consider this as an after-effect of the sentiment that came up after failing to predict aggressive interest rate hikes by Federal Reserves. 

Additionally, last week, market indices released their results of the second quarter that were way more than expected. In July, S&P 500 and Nasdaq registered their highler monthly gains in a month timeframe. This was the highest performance after 2020. At the same time, S&P 500 also experienced ups and downs. 

Federal Reserves are keen to mitigate the risks of recession and are putting efforts to minimize inflation. Their interest rate hikes came in the wake of the same efforts. However, many industry experts and analysts showed their concerns regarding this move by the US central bank. According to them, such intensive and aggressive moves could result in unemployment and eventually damage the economy. 

It was reported that manufacturing activity in the United States also slowed down and showed less than what it was expected to be in July. However, there were signs of restrictions with the supply chain getting easier. 

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Such data shows the manufacturing units in counties across Asian and European continent. In July, factories struggled to get into the pace due to the differences between growing global demand and restricted supply given several reasons like harsh pandemic rules in China

Prices of Oil were also on fall due to the demand concerns and this led the energy sector to suffer. On Friday this week, monthly reports of jobs in the US will be analyzed. This might end up providing some hints about what Federal Reserves could be the further decisions in order to counter the inflation that is soaring at decade high. 

Steve Anderrson
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