The stock market moved slightly higher on Friday as it tries to rebound from a brutal selloff with the benchmark S&P 500 on track for its worst week since March 2020.
Markets had a volatile week after the Fed hiked rates.
The S&P 500 gained 0.6% and the tech-laden Nasdaq was up 1.3% after several days of selloffs.
The S&P 500 is on track for its worst weekly performance since March 2020, when the U.S. economy last went into a recession.
The S&P and Nasdaq are stuck in bear market territory, even though the S&P fell below the 30,000 mark for the first time in more than four years.
The Federal Reserve raised interest rates by 75 basis points on Wednesday, the biggest increase in 28 years, with Fed Chair Powell suggesting a similar increase for the central bank's next policy meeting in July.
Markets are worried that the Fed won't be able to achieve a soft landing and will instead plunge the economy into a recession as it raises interest rates.
According to analysts at Bank of America, the Fed fell far behind the curve and are now playing a dangerous game of catch up.
The risks of a recession are rising, while achieving a soft landing for the U.S. economy appears increasingly challenging, according to Mark Haefele. With slowing economic growth and higher bond yields, we now see less upside for stocks this year.
The landscape will look a lot different within the next few months due to the overestimation of global inflation by the markets. Sentiment has become too negative and there is a deafening amount of recession talk.
The stock market plunges as the Fed rally deflates fears that a recession is inevitable.
Powell said the Fed could hike rates by 75 basis points again.
Experts worry that the fight against inflation will cause a recession.
The housing market could be "torpedo" in the U.S.
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