Stocks remained volatile in light summer trading, as investors absorbed inflation data and the start of Q2 earnings season.

The main US equity indices erased much of the previous week’s losses on optimism that the Fed will be able to curb inflation without tipping the economy into a recession.

The S&P 500 Index closed out its worst first half of the year since 1970.

Signs that growth and inflation might be moderating helped stocks rally sharply over the week, lifting the S&P 500 out of bear market territory.

The Fed’s most aggressive rate hike (+75bp) since 1994 raised recession fears and sent stocks sharply lower for a 2nd consecutive week.

Despite some early-week strength, stocks finished the week with steep losses as the Dow Jones lost 800 points.

Stocks gave back some of last week’s strong gains as investors still wonder if the Fed will be able to normalize inflation rate without triggering a recession.

The S&P 500 and the Nasdaq Index recorded strong gains, breaking a string of seven consecutive weekly declines.

US stocks continued their weekly losing streak as fears grow that inflation is causing consumers to pull back on discretionary spending, setting the stage for a coming recession.

It was another volatile week in Wall Street as the S&P 500 recorded losses for the sixth week in a row - the longest negative stretch since 2008.