(WKBN) — The stock market is all over the place of late. Some may think the new COVID omicron variant may have something to do with this.
The market was seeing some growth this year. But, on top of an increase in COVID cases, inflation continues to rise.
Interest rates are also climbing at a rapid pace. Last year at this time, the interest rate was at a quarter of a percent.
The Federal Reserve has since raised it to 1.75%.
In terms of the stock market, however, this growth isn’t necessarily bad news.
“What the market is wanting to accept is that we have a direction. So what the markets don’t like is uncertainty. So it can handle the rising rates. It can figure out what to do with it. So it wants to say, how high is this federal reserve going to start hiking rates?” said Chris Mediate with Mediate Financial.
Mediate advised people to stay in the market for the long term.
A recession is still possible, but he said the market is known for rebounding after a recession occurs.