Stocks defy logic in a see-saw week riled by inflation - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 50%

Business News News

Business Business Latest News,Business Business Headlines

At times this week, not even a crystal ball into the economy would’ve helped foretell the stock market’s return. Red-hot consumer prices? Stocks rallied violently, adding five per cent in a flash.

At times this week, not even a crystal ball into the economy would’ve helped foretell the stock market’s return. Red-hot consumer prices? Stocks rallied violently, adding 5 per cent in a flash.

Ironically, the seventh down week in nine for equities will be remembered for its single green day, Thursday, when investors somehow shook off another disastrous consumer price index and bid up nearly every company in the S&P 500. The rally was a nearly unprecedented reversal when measured by second-to-second volume -- and faded as quickly as it came, when a report Friday showed year-ahead inflation expectations rose among consumers for the first time in seven months.

Violent reversals this week -- up 2.6 per cent one day, down 2.4 per cent the next -- highlight the challenge of assessing reactions among investors whose obsession with inflation data and Federal Reserve reactions to them only seems to grow. The S&P 500 notched a 194-point down-to-up reversal on Thursday as data showed that core inflation posted a 6.6 per cent jump from a year ago, the largest in four decades.

The Friday slump quieted market pundits who spent the previous day speculating on what caused such a jarring turnaround which, according to Sundial Capital Research data, was the fifth-biggest in the S&P 500’s history. It came after the gauge erased half its climb from 2020’s pandemic low, a hit to wealth that to some could have signaled that the Fed’s fight against inflation may be over at some point soon.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Global stocks up after Wall St rebounds from inflation joltGlobal stock markets surged Friday after Wall Street rebounded from a slump caused by higher-than-forecast inflation numbers. When your at the bottom...
Source: CTVNews - 🏆 1. / 99 Read more »

TSX today: Index down 0.52% amid losses in energy and base metal stocks - BNN BloombergCanada's main stock index was down nearly 100 points in late-morning trading, weighed down by losses in the base metal and energy sectors, while U.S. stock markets were also in the red.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Canadian pensions join stampede out of Chinese stocks amid prolonged rout, delisting threatCanada Pension Plan remains the fund most exposed to China’s market
Source: financialpost - 🏆 7. / 85 Read more »

Traders get no reprieve from volatility as CPI sends U.S. stocks on wild rideThursday’s trading brought more eye-popping market gyrations
Source: globeandmail - 🏆 5. / 92 Read more »

Stocks are going crazy today — soaring 3% in wild ride after inflation data plungeS\u0026amp\u003BP 500 surged to highs of the day in a broad rally — wiping out a loss that hit 2% — on track to halt a six\u002Dday selloff. Read more
Source: nationalpost - 🏆 10. / 80 Read more »