Inflation data backs a soft landing, but it might not be enough to stop the market's swoon

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

Inflation data backs a soft landing, but it might not be enough to stop the market's swoon. There’s an old saw on Wall Street: in corrections it takes a lot longer to lose the first 5% because people buy the dip. The second 5% comes a lot quicker. CNBC

The S & P 500 is now down six of the last seven trading sessions. Still, it's only 3% off its recent highs. Why does it feel worse? Maybe it's because everyone keeps trying to buy the dips, and it's not working. "Definitely no panic," Chris Murphy, co-head of derivative strategy at Susquehanna International Group told me. "If anything, feels like a lot of people want to buy a 5-10% dip. Every day this week, the S & P has rallied in the afternoon.

"AI euphoria is falling as very few companies are actually making any incremental revenue off it and market is now seeing that," he said. Tech weakness has been offset by strength in health care, energy and pharmaceuticals. The biggest risk seems to be rising yields. It's a two-edged sword: higher yields are a validation of the recovery, but it's tough on tech stocks. Cash on the sidelines A pullback in tech seems understandable given all the AI hype.

 

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:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines

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

Paramount Earnings Reaction: Wall Street Gives Better Reviews Than Last TimeParamount's latest earnings update shows better results than its previous quarter, with Wall Street analysts giving positive reviews and even raising their stock price targets. The Hollywood firm narrowed its quarterly adjusted operating loss in streaming to $424 million and saw a slight increase in Paramount+ subscribers to 61 million.
Source: THR - 🏆 411. / 53 Read more »