Hotter-than-expected U.S. consumer-price index readings have triggered some of the stock market’s biggest one-day selloffs in 2022, serving to focus investor attention ahead of the latest measure of retail inflation on Thursday.
Without those nine down days, the S&P 500 would have been up 8.6% year-to-date through the end of last week, Colas wrote. See: It’s time to pivot from the idea of a Federal Reserve rate-hike pivot, Goldman Sachs strategists say “I would expect to see a similar reaction to what we saw from Friday’s jobs report, which was a positive number that translates into a negative stock-market reaction,” Devitt told MarketWatch via phone. “Stock prices have adjusted. Earnings have adjusted, so there’s already been this kind of managing of expectations leads me to take up some of this and try to be on the upside for some of these stocks, just because so much of the bad news is already there.
“The bulls are desperate for signs that inflation is set to roll back to the Fed’s target — they may be mistaken, and while headline inflation is expected to fall thanks to a decline in energy, the Fed’s focus has shifted towards core CPI,” said Chris Weston, head of research of Pepperstone, in a Tuesday note.