Here are stocks that win when inflation slows

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These stocks that move in opposite direction with price pressures could rally from here, according to Bank of America.

Inflation moderated a tad in April, and so stocks that win historically when inflation eases could be big winners ahead if that trend continues. The consumer price index, which measures the cost of a broad swath of goods and services, rose 4.9% in April from last year, slightly less than the 5% Dow Jones estimate. The CPI reading has cooled considerably since peaking out around 9% in June 2022.

The Wall Street firm created an "Anti-Inflation" screen with S & P 500 companies whose relative performance has a strong negative relationship — or beta — with inflation. Bank of America's screen is based on inflation data going back to 1975. Amazon is on the top of the list with the strongest negative relationship to inflation. Th e-commerce giant has led the market rally this year, jumping nearly 27% as inflation shows signs of moderating.

 

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