Analysts differed over whether this week's downturn marks a brief hiccup or a sign of more losses to come.
&P 500 soaring to its highest level in three months, reflecting optimism that price increases have peaked.
Still, Fed officials have signaled in recent days that the central bank intends to continue a series of rate hikes, aiming to bring inflation back down to its target of 2%. Last Thursday, San Francisco Federal Reserve President Mary Dalythat a 50- or 75-point basis hike at the central bank's meeting next month would be "reasonable" and that rate hikes would continue into at least 2023.
Market forecasters also face the challenge of murky economic data, Guggenheim analyst John DiFucci told ABC News. A potential recession, however, would hammer corporate profits, causing a prolonged downturn in the market, said DiFucci of Guggenheim.
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