Stocks have been under severe pressure lately, flirting with a bear market for the past week. The S&P 500 is now 18.6% below a record closing high set in early January and more than 19% below an intraday all-time high reached earlier this year. And indeed investors have been focused on the rate hiking cycle this week, trying to decipher whether the Federal Reserve will continue with an aggressive rate hikes and whether the European Central Bank will decide to follow suit.

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