Recession Fears Resurface

U.S. stocks retraced gains a second straight week but ended Friday above deeper intra-day lows. Recession jitters stirred investor angst last week after the Fed raised rates by 0.50% as expected while signaling at least two more rate hikes in 2023 before taking a wait-and-see pause. Moreover, Fed Chairman Powell said no downward rate pivot should be expected until 2024. Overall, the Fed’s hawkish forecasts heightened investors’ growth concerns.