“Yet, with the unemployment rate back to the historic low of 3.5%, how realistic is it to expect wage growth to move meaningfully lower? The Fed will likely be skeptical,” Shah added. “And so, with the record low unemployment rate indicating that there is still so much work ahead of them, Fed policy rates are set to rise above 5% within just a few months and a hard landing looks to be the most likely outcome this year.”
Among individual stocks, Tesla plummeted after the electric vehicle maker cut its prices on its Model 3 and Model Y vehicles in China.
